1 Change in Social Security What Most Retirees Should Want Is What Joe Biden Wants
In his campaign for president, Joe Biden promised to "put Social Security on a road to long-term stability." He might achieve this aim most effectively by focusing on one aspect of his strategy.
The president proposed raising the payroll taxes that high-income Americans must pay.
He particularly wants the Federal Insurance Contributions Act (FICA) tax to be applied to any income over $400,000 per year. A payroll tax known as FICA raises money for Social Security.
Currently, a 12.4% tax rate applies to all income up to $147,000 per year. This payroll tax is split equally between employers and employees.
Self-employed people are obligated to pay the whole amount because they are both employers and workers.