Employer tax 6.2% 1.45% 7.65%
Totals 12.4% 2.9% 15.3%
Social Security FICA taxes are restricted to a "taxable maximum" or "wage threshold." Earnings above the threshold are not subject to FICA taxes. In 2010, the threshold was $106,800.
The payroll tax break that President Obama asked Congress to pass will let the worker and employee forgo that tax for the period of another year. This will not hurt Social Security because the money loss will be made up by requiring Congress to repay some of the 2.5 trillion dollars they have borrowed from the trust.
Congress needs to remove the threshold from $106,800 to at least $2,000,000. Many rich people can afford to pay a little more to help the elderly that did backbreaking work their whole life. At the very least Christians should be for this idea. Congress also needs to look at Medicare Part D. This was unfunded and a drain on the trust fund surplus. Medicine for the elderly should be provided at cost for seniors.
This is not a fix by no means just a couple of ideas from an old retired man. Icurity f I can come up with a few ideas once in a while I find it hard to fathom why our leaders refuse to seek solutions to these problems. Could it be that they don’t want to fix the problems our seniors are going to face?
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