How much additional revenue would be raised if the cap on SS withholding was removed?

How much additional revenue would be raised if the cap on SS withholding was removed?

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  • 1 decade ago
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    You mean RAISE TAXES,,,,,take more money from hard working Americans to support a national ponzi scheme.

    Now I'm sure your income level is conveniently below the SS cap.

    Additional revenue would be raised but it would have little effect on making SS solvent.

    It would be better to give Americans a choice SS or 401k.

  • 1 decade ago

    Less than SS would have to pay out in additional benefits, because the cap on SS withholding is actually higher than the benefits cap. People who earn over the limit and pay the cap amount of SS withholding, and then receive the capped amount of benefits, actually get a lower return for their contributions than lower paid retirees.

    You could of course remove the cap on withholding while keeping the cap on benefits, but then SS becomes absolutely no more than yet another "squeeze the rich to pay the poor" income redistribution tax.

    Richard

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