It seems like a contradiction that as of 2024 all yearly earnings above $168,600 are not subject to that earner paying the 6.2% Social Security tax and therefore this is not withheld from their pay, nor is the employer required to pay their portion of that 6.2%, either. The reason this is such a contradiction is that America’s tax system is progressive in nature, but the Social Security tax as currently structured, belies that for high-income earners. Not only does this not appear to be fair, but it seems to confirm that the rich get special privileges, and the poor and middle class carry even more of the resulting burden. Therefore, this nation should consider amending the taxation for high-income earners in the following way:
1. For income above $168,600 but below $250,00 the Social Security tax shall be reduced to 5.2%
2. For income above $250,00 but below $330,000 the Social Security tax shall be reduced to 4.2%
3. For income above $330,000 but below $410,000 the Social Security tax shall be reduced to 3.2%.
4. For income above $410,000 but below $500,00 the Social Security tax shall be reduced to 2.2%
5. For income above $500,000 the Social Security tax shall be reduced to 1.45%.
What we find through this modification is that high-earners will still get their Social Security discount, but that discount will be leveled down before it eventually reaches just 1.45%, which matches what is taken out of their paycheck for Medicare. Not only does this seem to be reasonable in what it is trying to achieve, which is to provide more funding to the Social Security fund, but it also is pretty much in harmony with the current Social Security tax withholding system, by reducing that tax for high-income earners, though it will not eliminate such.
Look, it has to be said, those that are high-earners are already in the pole position to have a very pleasant life, so that it doesn’t seem necessary or fair for these high-earners to get even more benefits. Indeed, the amount of money that these high-earners would sacrifice to Social Security under this program would be essentially no real big deal for them, though in aggregate it would be a big deal for the Social Security Administration. Additionally, those who are fortunate enough or skilled enough to be in the category of the top ten percent of wages so being paid, have got to recognize that this amount of income, in and of itself, should be more than sufficient for them to have no legitimate gripes, about no longer getting a free ride above $168,600 on Social Security withholding.
After all, for all those who complain about the unfairness of this proposal, it’s only fair to ask, as to whether they would prefer to make less money and therefore not have to deal with the fact that the Social Security tax would no longer be phased out for them, or whether they would prefer to take a small hit to their net pay and continue to make wages that places them in the top ten percent of all American wage earners. The answer to that question is pretty obvious, and therefore appropriate legislation should be proposed to rectify this current unfairness to something more sensible, for the betterment of all.