Social security

The social security trust fund stopped paying out benefits from the interest earned on the fund in 2015 and has since been using principal to pay benefits. Unless changes are made the benefits paid in 2030 will be reduced. The government has difficulty in reducing the overall debt by raising taxes because when they do new programs are instituted instead of paying down debt. That would not be the case if social security taxes were increased. That is because all social security withhold must go into the social security fund. Currently every worker pays 6.2% into the fund and this is matched by the employer. This 6.2% could be increase to those earning more than some amount. This would increase taxes on the high earners and guarantee that the money would be used only for social security benefits. Simultaneously the cap on earnings of $160,000 could be increased. The most anyone can pay into social security is 6.2% of $160,000 or $9,900. The tax on high earners could be raised to 10% and the cap raised to $400,000 and these people would start paying in more. For example a person who currently earns $400,000 pays in $9,900 but with the changes they would pay in 6.2% of $160,000 plus 10% of $240,000 or $33,900. This would go a long way to protecting benefits for years. Then add to that raising the full retirement age to 70 for all people born after 2000 would add more safety. Then reduce benefits for all retirees with income over $400,000 on a sliding scale to zero benefits on all with income over a million. These are a few changes that could be made and they would be primarily paid for by the rich.