RE: Taxing salary over $72,600 for Social Security

[Michael Brennan <MikeEd22Brennan@webtv.net>]

 I wrote that 69% of the  Social Security trustees' projected long range deficit would be cut if  all salary were taxed -- not just the first $72,600, and if the taxed earnings would be credited in determining benefits. This is from the Office of the Chief Actuary, Social Security Administration, "Estimated Long-Range OASDI Financial Effect of Various Reform Provisions, June 5, 1998 (Page 1 of the Reform Provisions).

I do not know the federal tax effect of the increased benefits going to those beginning to pay Social Security tax on all their salary.

This is guaranteed insurance, and should be considered as such, rather than as a return on investment.

Some might find ways of avoiding paying this tax on their income over $72,600, just as some may avoid other taxes.  But should taxation be avoided unless compliance is perfect?

I believe that a substantial proportion of that 6%  who earn over $72,600 would willingly help strengthen the Social Security system which has helped keep so many millions of people out of poverty.