Social Security may run out of money in 2034 unless a solution is found to shore it up. Boosting taxes on the wealthy is proposed, but its success is questioned.
The effectiveness of raising taxes on the wealthy to keep Social Security operating has been questioned, according to an article in Trust Advisor “Can Taxing The Wealthy Save Social Security?”
The reviewed proposal is a simple one: raise taxes. Currently, any income an individual makes that exceeds $118,500 is not subject to the payroll taxes that fund Social Security. Politicians have proposed eliminating that cap and taxing all income. According to the findings of the article, the proposal would not solve the entire problem, but it would reduce the expected shortage by 88%. However, that number has been disputed. If different assumptions are made, then different results can be produced concerning the effectiveness of the plan.
Whatever the solution, it is obvious that something must be done about Social Security.
Reference: Trust Advisor (July 14, 2016) “Can Taxing The Wealthy Save Social Security?”