More Troubled Ideas To Reform Social Security In the US

Posted by jerry as finance

I read this blog post recently, proposing an idea for social security tax reform.  The net of the story is that the FICA tax is regressive – it impacts the poor more than the rich, so lets turn it around.  Put a lower limit in place for salaries, below which there is no FICA burden.  Remove the cap that is currently in place where FICA drops off after the first $97,500.  Then, lower the overall FICA rate from 6.2% to 3.2%, making the people in the middle income brackets happy as well, but sticking it to the rich.

I don’t agree.

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