No one who makes more than $107,000 a year is going to like me saying it, but just remove the income cap on the OASDI, or as most people know it, Social Security tax.
If you make more than the $107,000 you know what I am talking about; you all of a sudden have more money every pay period until the first pay period of the following year.
Bu then when a new year starts? Yep, here it is again, being taken out of your paycheck.
But really, alot of people make over $107,000 a year, and if we just keep that tax, (6.2% in case you were wondering) with no income limit, well, that would go a long way towards funding the gap that is projected for the Social Security program.
I suspect that it would be pretty tough to push something like this through the Senate and Congress though, and that it might even ignite more class envy, since this is one of those things you usually don’t even know about until you are affected (e.g. why do I all of a sudden have more money in my paycheck?).
I see it as a pretty straightforward tax though; if people are already used to it coming out of their pay, they will just factor it in for all pay over the annual cap.
Not as much fun as looking forward every year to when you reach that target and then having the extra money, but it does become inversely noticed anyway the more money you make; at some point it just becomes a rounding error.