Social Security is now and will be extremely important to most Americans over the age of 62. It is the major source of income for most older Americans. Social Security is the major source of income for most older Americans. Among elderly Social Security beneficiaries, 50% of married couples and 71% of unmarried persons receive 50% or more of their income from Social Security and among elderly Social Security beneficiaries, 23% of married couples and about 43% of unmarried persons rely on Social Security for 90% or more of their income! (See: https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf)
Despite the importance of Social Security in staving off elderly poverty the entire Social Security fund is expected to run out of money by 2034 (17 years). After that, retirees can generally expect about 77 cents on every dollar of their scheduled benefits. (See: http://money.cnn.com/2016/06/22/pf/social-security-medicare/ )
How I propose to fix Social Security so it will remain solvent for the next 75 years.
In 2017, the maximum amount of wages to the 6.2% Social Security tax is $127,200. I would propose that there be no cap on the maximum amount of taxable earnings so that all taxable earnings are subject to an equal 6.2% Social Security tax. This would mean that every income earner would pay the same percentage of their earnings into Social Security. Why is it fair for the person who makes $25,000/year to pay 6.2% of his/her wages into Social Security when the person who makes $2,000,000 pays only .39% of his/hers? The proportion each person pays should be the same. Here is a video fully explaining this. I would also broaden the base by making all income (earned and unearned) subject to the Social Security tax. However I would exempt the first $30,000 of earned income from the 6.2% Social Security tax (thereby increasing take home pay by $1,860!)
In addition to removing the cap, I would limit the amount of monthly benefits that single seniors with non-Social Security incomes over $125,000 a year and couples with non-Social Security incomes over $250,000 could receive.
Check out my video on the Social Security Payroll Tax Cap
Here is a link to an interview that backs up what I said (in my video) about removing the Social Security payroll tax cap as a way to keep Social Security viable for the next 75 years.