It’s been talked about for a while now but Senator Bernie Sanders (I-VT) has introduced a bill  that would remove the Social Security income cap. Right now, the cap is at $106,800. This means that employees would pay their share of the Social Security tax for all of their income, not just what they earn under the cap of $106,800. Right now, employees pay 6.2% to Social Security on compensation up to $106,800 (it’s actually less because of the payroll tax holiday ), which means a maximum payment of $6,621.60. If this bill were to become law, there would be no limit.
I’ve always found it strange that there was a Social Security income cap in the first place but that’s how the system was designed. It seems like a sensible idea and I’m eager to hear what the accountant thinks this will do in terms of SS solvency.
What do you think about it?