Biden's Plan to Increase Taxes for Social Security Spares the Very Rich
Social Security's trust fund is in a lot of financial trouble, and Democratic presidential nominee Joe Biden has a plan to fix it. Mr. Biden has indicated that if elected, he'll expand the income that payroll taxes apply to.
Currently, these taxes are collected only up to an annual wage base limit, which is $137,700 for 2020. While the majority of Americans pay them on their entire salaries, those who earn income above this level don't. Mr. Biden would change that by imposing payroll taxes on income above $400,000.
This would create a donut hole where Americans with incomes between $137,700 and $400,000 don't pay anything extra, but those with incomes above that threshold would be asked to pay more to help fund benefits for others without a corresponding increase of their own retirement income.
Source Fool.com
