The Social Security Game - Fixing the system
I found this posting on SSA connect. As social security claimant's representative, Phil Robinson, states " merely eliminating the cap on earnings subject to the FICA tax eliminates 93% of the problem of paying future retirees."
I've actually come across this information before and it's a little frustrating to consider how easily the system could be fixed, simply by treating high wage-earners the same as regular citizens: by having their full income subjected to FICA tax, and not receiving an exemption past a certain point.
Of course, the upper middle-class and the rich would scream to the heavens over such a proposal (in my opinion, if the cap was removed, the application of fica tax to those new income segments would be scaled so that even the upper middle class wouldn't get scalded).
However, here's a solution (well, not a solution but a step in the right direction). Means testing for individuals who, at retirement age, have X amount in annual income and X amount in net assets. They do means testings for SSI, which is a needs-based program. So why not do it for the rich. Let's be honest, does an individual with a net worth of three million at retirement really need to draw social security? Maybe the rich guy thinks so. But for the good of the country, I don't think so.
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