How Much Money Could Go To Social Security
Figuring out how much money could be raised by Social Security is not as clear cut as many individuals believe. Different plans will have different results. For the purpose of this article, we will be looking at the Social Security 2100 Act, a proposal that aims at reconstructing the whole system, not just the current cap issue.
So, the Social Security 2100 Act would not only include a tax on earned income that surpasses $400,000, but it will also change how benefits are calculated. Furthermore, it proposes an increase on what percentage of earned income below the taxable minimum will be taxed. This last point will see an all-around change.
All things considered, this new plan would generate a $4.7 trillion tax increase over the next 10 years, according to the Committee for a Responsible Federal Budget. Through 2029, the revenue would be closer to $1.5 trillion. Finally, that would translate to $150 billion, yearly, for Social Security alone by simply taxing higher earnings alone.
