Fixed Income

Raising the Cap on Taxable Income Has Drawbacks

The more you pay into the system, the more you are going to get out of the system.
Raising the Cap on Taxable Income Has Drawbacks
Many people think that the rich should pay more into social security. Standret/Shutterstock
Tom Margenau
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I have probably written 100 columns about possible Social Security reforms. Well here comes column number 101!

What is prompting my discussion of the issue this time is that a certain reform proposal has been getting a lot of press lately. It is probably the most popular and most supported of all potential Social Security reforms. But there is one big drawback to the proposal that very few people ever mention. Today I will explain it.

Tom Margenau
Tom Margenau
Author
Tom Margenau worked for 32 years in a variety of positions for the Social Security Administration before retiring in 2005. He has served as the director of SSA’s public information office, the chief editor of more than 100 SSA publications, a deputy press officer and spokesman, and a speechwriter for the commissioner of Social Security. For 12 years, he also wrote Social Security columns for local newspapers, and recently published the book “Social Security: Simple and Smart.” If you have a Social Security question, contact him at [email protected]