To the editor: For wage earners, the Social Safety tax is currently 6.2% for each worker and employer for the primary $184,500 of annual wages, falling to zero on all wages past that (self-employed people pay 12.4% of the primary $184,500 of internet earnings).
A generally prompt treatment for the projected reserve fund depletion is to easily lengthen or eradicate the taxable wage cap, which is at present yearly adjusted upward for inflation (“The Social Security crisis should be dominating the Senate campaign,” June 12). What by no means appears to be thought of is adjusting the tax fee. I might assume that going from a hard and fast fee to a regressive fee would procure extra income and will truly scale back the tax for many wage earners (necessary for political acceptance).
It may look one thing like this: 6% tax on employer and worker on the primary $200,000 earned; 5% on the subsequent $100,000; adopted by 4% to three% to 2% on $100,000 increments to ultimately 1% for earnings over $600,000 yearly. Whereas this may not procure the identical income as merely eliminating the wage cap, it might be rather more palatable politically.
Bob Fey, Orange
