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Assignment:
There are people for and against raising the cap for social security, all the while there are people for eliminating the cap all together. According to Romig (2016), the argument for raising the social security cap would help mitigate the destruction of social security payroll tax base that is caused by wage inequality. Most worker's taxes would not change but for those in the high earners bracket would depend on whether the cap were to be raised or eliminated (Romig, 2016). According to Davis & Wilson (1999), if we were to eliminate the social security tax cap altogether this could reduce job creation and economic growth while substantially increasing payroll taxes on American workers, this slowdown in growth of compensation would cause a decrease in the savings rate and would further tighten family budgets (Davis & Wilson, 1999).
Explain your take on this
References:
Davis, Gareth, & Wilson, D. (1999, January ). The Impact of Removing Social Security's Tax Cap on Wages. The Heritage Foundation, (), .
Romig, K (2016). Center on Budget and Policy Priorities.
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