Social Security System is out of money!
This year, the money paid out of the Social Security system will exceed the money paid into the system. There are two fundamental problems here. 1)The the account that was set up for the yearly surplus, that has occurred every year since the system was set up in the 1930's, is empty because Congress has raided it over the years. It was an easy piggy bank to raid. 2) The 15 million Americans unemployed today are not paying into the fund and 15 million more under employed are making reduced payments.
Remember that the solution is simply and powerful. Just remove the cap on SS payments into the fund. You can prove this for yourself. Look up the distribution of incomes in the U.S. (That is easy.) Then count and estimate the number of individuals with incomes greater than $106,800. Estimate the median point in that income distribution. Multiply the median point in dollars by the number of individuals with incomes greater than $106,800. Multiply that huge number by 6.2% (the SS tax rate).
Then double that for the employer's contribution.
Be ready. You are now dealing with a huge, huge number. You are also looking at the end of the Social Security fund problem.....Forever!!
The change can be implemented over a number of years to ease its impact.
Now watch for the first politician to propose this simple solution. And be very afraid of all the half ass proposals that will be proposed to solve the problem.