Con: Doesn’t Address Program Costs
Calculating benefits would be challenging under the new Social Security system if we were to remove the tax cap. Each individual is subject to benefits that are dependant on their highest earned wages over a period of 30 years. Under these current guidelines, high income earners who would also pay into their Social Security based on their income would receive large payments back during retirement.
All of this is to say that if the program changes nothing but the tax cap, though low-income earners might hope for some ‘help’ further down the line (thanks to the overabundance of money in the program’s reserve) it’ll still be the high income households that would benefit from these changes.
