Originally Posted by CRLLS
One may or not agree with taxing income with no maximum. And if they are included, whether that higher average income should be included in the monthly benefit at a 15% level. My suggestions was there should be a compromise of sorts with no limit on income taxed and a much lower 4th level added, but not zero, benefit from that higher income starting at todays "maximum" income taxed.
Two sources that many people consider credible (Robert Reich and the Motley Fool) have stated indignantly that people who make over the SS cap aren't paying the SS tax on wages above the cap. Reich proposed applying it to 100% of wages in order to bolster SS. Neither noted that the current SS formula also does not count any wages over the cap in determining benefits, either.
And maybe the SS contribution over the current cap could be at a lower rate but still provide some small extra benefit above that bendpoint, as you suggested.
I pointed out to the friend on FB who posted the Reich video that he omitted a few facts and that it would be comparable to my saying that I was a widow, haven't worked for 7 years and have less than $100 in my wallet. All of which is true.