Should the cap on Social Security be removed?
Social Security Cap
The Social Security Fund has served to keep a large number of the elderly population and seniors out of poverty since its official enactment in 1935. Presently as the baby boomers begin to retire or near retirement, there is a boiling crisis of the fund, and recent questions surround the sustainability of the Social Security to finance future generations of retirees. The financial crisis facing the social security fund is that in 15 years, it will incur fewer finances than what is needed to pay retirees. And in 30 years, the social security will only cover 75% of consumers for every dollar of allowances and benefits it has promised to the retired workforce. Indeed, these trends point that in 2075, the social security fund will operate an annual deficit of 570 billion as par the 1998 inflated dollar. In response to this looming crisis, the Congress has taken more stringent measures (Huffington, 2017). One of them is to raise the highest amount of taxable income and the other is to increase the total payable social security taxes. The above cap on social security will enable the US government to sustainably finance future generations of retirees – alongside keeping the economy in a relatively stable state. However, despite the promises of raising the total taxable income to boost social security taxes, a fundamental question that lingers is; should the cap on social security be scrapped?
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