It is obvious that some reform is needed in the so-called federal entitlement programs, most notably Social Security.
Wouldn’t it be wonderful if our politicians in Washington could guarantee an increase in future Social Security revenues while cutting the Social Security tax rate? And wouldn’t it be grand if they could eliminate some of the blatant loopholes that allow many affluent Americans to avoid contributing to the Social Security fund?
It seems to me that Congress could cut the current F.I.C.A. Social Security tax from 6.2 percent to a flat 6 percent and still raise more money, by simultaneously removing the cap on income subject to the tax. That would mean no more free rides for those making more than $113,700 a year.
And while they’re at it, lawmakers should extend the F.I.C.A. tax to investment and dividend incomes, which are exempt from a levy that all working people have to endure with every paycheck.
Imagine a law that would both lower a major tax rate and spread the tax burden more evenly among all Americans. Sounds fair to me.