U.S. Senator Bernie Sanders plans to introduce legislation to keep the current cap at $106,800, but to also apply the Social Security payroll tax to earnings over $250,000. It is similar to previous bills and echoes a proposal by then-Senator Obama on the campaign trail in 2008.
http://cepr.net/publications/reports/whos-above-the-social-security-payroll-tax-cap
Those who earned more over that time get an additional 32 percent of the next $3,857. Higher earners also get 15 cents on the dollar for every additional $1 they earn over $4,624 up to the current earnings cap. Eliminating the cap and raising what Social Security pays high earners wouldn’t solve any Social Security shortfall. More money would come in, but more would go out. If we raise the cap but we don’t pay high earners more, then Social Security begins to look more like a retirement planning welfare program.
https://www.bankrate.com/financing/retirement/social-security-cap-or-no-cap/
Lifting the cap on contributions to Social Security would simultaneously lift the cap on how much salary is included for calculation of the retirement benefit, or Primary Insurance Amount (PIA) . It appears to be a “wash” – take more money from the high earners and then pay them a correspondingly higher benefit.
https://www.fedsmith.com/2013/03/13/the-social-security-tax-cap/
Social Security commissioned an interesting study on leakage, by three outside professors. A primary finding of the study is that even with the leakage, raising the tax cap would still result in a reduction of the SSA deficit, long-term.
https://www.fedsmith.com/2013/03/13/the-social-security-tax-cap/
The most frequently suggested solution to Social Security‘s potential shortfall is to raise the cap on earnings. That would mean people who earn more than the current cap of $113,700 and their employers would owe payroll taxes on earnings above that level. In some suggested scenarios, those who pay more wouldn’t get more.
https://www.bankrate.com/financing/retirement/social-security-cap-or-no-cap/
The idea of having a cap on the amount of Social Security benefits that you receive is not something that appeals to all that many people. Cap Some people may write articles about there needs to be a cap on the Social Security benefits that you can earn in your life, but this is not likely to happen.
http://www.todaysseniors.com/wp/social-security/is-there-a-cap-on-social-security/
There is a good deal of concern, and much discussion, about entitlement changes. Regarding Social Security, in particular, should the full retirement age be raised to 70? Maybe a better idea would be to raise the earnings cap (aka: tax max) for paying Social Security taxes. This idea seems to be more in favor than raising the retirement age. However, like so many other ideas that look pretty good, it has a down side.
https://www.fedsmith.com/2013/03/13/the-social-security-tax-cap/
There is a cap on Social Security as far as how much you are taxed when it comes to paying a Social Security. The cap is something like after every dollar over one hundred thousand dollars, you are not actually going to be taxed. This is a good cap on Social Security taxes if you happen to be one of the highest income earners in our society. Some people have advocated for lifting the cap when it comes to Social Security taxes, but it is hard to say exactly how popular the idea to lift the cap on Social Security taxes would be. Limits There are also limits to the amount of Social Security retirement benefits that you can actually have on a yearly basis.
http://www.todaysseniors.com/wp/social-security/is-there-a-cap-on-social-security/
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https://www.fedsmith.com/2013/03/13/the-social-security-tax-cap/
Andrew Biggs, a resident scholar at the American Enterprise Institute and former principal deputy commissioner of the Social Security Administration, pointed out in The New York Times Wednesday that if we eliminate the cap and don’t pay more, “a person earning $225,000 would pay roughly four times more in taxes than he’ll receive in benefits.”
https://www.bankrate.com/financing/retirement/social-security-cap-or-no-cap/
what is the cap on social security
In Social Security, the cap is something like after every dollar over one hundred thousand dollars, you are not actually going to be taxed. The cap on social security is something like after every dollar over one hundred thousand dollars, you are not actually going to be taxed.