Given the pending insolvency of Social Security, the "temporary" reduction in SS taxes has to be allowed to expire. However, this "tax increase" will be demagogued as a "war on the poor" unless it is accompanied by lifting the cap on employer contributions for salaries over $108,000. This will also remove a disincentive to hiring new employees in favor of simply paying existing employees more money to do more work. This is already done for Medicare taxes, so it would be easy to extend it to the rest of the Social Security tax calculation.
Also, lifting the cap on employee contributions might be a compromise agreement to permanently keep the "Bush" income tax rates. Any thoughts?
Also, lifting the cap on employee contributions might be a compromise agreement to permanently keep the "Bush" income tax rates. Any thoughts?
