Paychecks. There are two simple, though unpopular, ways to provide more funding for Social Security and Medicare: Either raise the amount of payroll taxes (FICA) taken out of everybody’s paycheck, or raise the income threshold at which the Social Security portion of that withholding ends. (There’s no income threshold for the Medicare portion.) The most likely tax hike is an increase in the threshold for Social Security tax, which would place the burden on higher earners rather than lower ones.Originally Posted by JohnnyCash
Right now, everybody pays 6.2% of their income to help fund Social Security, up to the first $118,500 of earnings. On earnings above that threshold, there's no Social Security tax. The threshold rises every year by the average rate of wage growth, which was 1.2% in 2014. But Congress could raise the threshold to any income level -- $150,000, $500,000, $1 million — or eliminate it completely. Higher earners would squeal but if the country really needed the money, it wouldn’t matter. http://finance.yahoo.com/news/these-...191918823.html
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