Don’t raise Social Security tax.

Some people argue that there should be no cap on Social Security taxable wages and that the tax should be paid on all wages.  The reason for the cap is that social security is not a welfare program.  Benefits received are based on taxes paid in.  Medicare has already been converted into a welfare program.  The Medicare tax is applied to all wages, but those who pay more don’t get any greater benefits.  Medicare taxes 2.9% of all wages.  Social Security taxes 12.4% of wages up to $110,100.  If the Social Security tax were to be applied to all wages, it would probably be the greatest tax increase of all time.  Most people want a fair payment for what they have paid in.  They understand that a higher retirement age is fair.  That is what should be done.

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