I agree if you treat social security taxes and social security benefits as unlinked.barnhart wrote: ↑Mon Mar 06, 2023 11:33 pm I find the income ceiling for social security tax rather regressive, taxing all income below the cutoff and none above it. In effect lower middle class people are taxed on all their income while top earners are only taxed on the first 150,000$. Why not tax every one on the same percentage of their income.
The argument for the tax cutoff is that people earning more than that don't get any higher social security benefit for the extra taxes. In other words, someone earning $160,000/year and someone earning $500,000/yr or $1 million/year are all only going to get the same maximum social security benefit.
But in reality, your social security benefit and taxes are only loosely linked. If you work your whole life and die at age 65 just months before retirement then you will get not a dime for all that work. Or if you die at age 67 you only get 1 year of social security compared to your neighbor who lives until 97 and gets 31 years of inflation-indexed benefits.
So yes, I'd favor raising the cap or even dropping it completely. The super rich don't get most of their income as wages anyway. So it isn't like Elon Musk is going to pay 6.2% on his entire wealth. He might not even draw an actual salary and might not actually pay any social security tax.
Raising the tax limit is mostly going to hit highly paid professionals like tech engineers, doctors and lawyers and mid-level managers and executives.