Nathan Newman has a simple and fair solution to the fake social security crisis:
A Fair Solution: But if any “solution” is needed, the simplest is the fairest. Currently, while a minimum wage worker pays 6.2% of his income into the social security trust fund — $12.4% if you include the matching employers portion — a CEO paid a $1 million dollars pays only 1% of his salary into the system. And Bill Gates pays nothing into the system from his billions in stock income.
This all stems from the fact that wage income above a certain level — $87,000 per year in 2003 — is completely untaxed by social security. Eliminating this so-called “cap” would raise plenty of income to help out the system. Only 83% of all wages paid are subject to social security taxes, so this would increase annual social security revenues 20%, or roughly $100 billion per year, plenty
This is hardly a radical idea– the “cap” used to apply to the payroll taxes funding Medicare, but the 1993 tax bill removed the cap and now every dollar of wage income is taxed to help fund the Medicare system. There’s no reason not to do the same for social security.