Now that I have reached Full Retirement Age (FRA) and collecting while still working I have become more interested in the whole process and projected shortfall. I can't imagine this country can borrow trillions on foreign aid and and conflicts but consider it unthinkable to borrow to pay citizens their own money back as promised. A simpler solution is to raise or even eliminate the income ceiling for paying in. I realize it does increase annually but why are lower income citizens total income taxed but the more wealthy aren't? You can argue that they would never get their share back I suppose but it sure would solve or considerably lessen the shortfall projection. Here are the recent year's income limits taken from an MSN article:
Tax increases
More people paying into Social Security will have to pay a tax on the program in 2025.
That’s because the maximum taxable earnings limit, which is the highest income subject to Social Security tax, is set to increase.
In 2024, the Social Security tax limit was $168,600, meaning people who earned more than that amount were not required to pay the tax. The tax limit in 2023 was $160,200.
In 2025, the maximum taxable earnings limit is rising to $176,100. Any current worker earning up to this amount will be required to pay the Social Security tax of 6.2% on their income each for both employees and employers.
Also, I see Pres to be Trump would like to eliminate paying taxes on Social Security payments in the future. How obvious is this one.
Tax increases
More people paying into Social Security will have to pay a tax on the program in 2025.
That’s because the maximum taxable earnings limit, which is the highest income subject to Social Security tax, is set to increase.
In 2024, the Social Security tax limit was $168,600, meaning people who earned more than that amount were not required to pay the tax. The tax limit in 2023 was $160,200.
In 2025, the maximum taxable earnings limit is rising to $176,100. Any current worker earning up to this amount will be required to pay the Social Security tax of 6.2% on their income each for both employees and employers.
Also, I see Pres to be Trump would like to eliminate paying taxes on Social Security payments in the future. How obvious is this one.
