Con: It Only Taxes Earned Income
Many high income households rely on unearned income such as investments. The issue with these sources of income is that the Social Security tax only encompasses earned income, thus investments could not contribute to the fund’s revenue, regardless of the cap lift.
So while estimates might show us how much money the Social Security program would gain, we must also remind ourselves that it is only capable of pulling funds from a single source of income. Unearned income would not be a part of those calculations.
