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Restore Tax Fairness for Social Security's Solvency
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Christian Weller,
Center for American Progress,
5/1/2005
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Part of Social Security’s long-term financial shortfall stems from the fact that not all wages and salaries are subject to Social Security taxation. As a consequence, an ever growing share of high-income earnings has moved beyond the cap. Thus, policymakers should focus on restoring fiscal fairness, which would also improve Social Security’s long-term solvency. Either the cap should be raised, such that at least 90 percent of wages
and salaries are again subject to Social Security taxation, as was the case at the time of the last Social Security reform in 1983, or the cap should be eliminated to completely erase Social Security’s projected shortfall for the coming 75 years. Either policy solution would mean that those taxpayers who are in the best position to help Social Security’s finances would pay their fair share for this important program’s long-term future.
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Link to Report (PDF)
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Pages: 12
Price: Free
Ordering Information:
Center for American Progress
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