LEE KRAMER'S ROOM: With Views

[blackhawks]

Won't need Cinnebun for this to pass in the Senate. Let the GOP argue against it in both the House and the Senate. After all it's the only proposal of additional funding to alleviate debt.

Manchin Proposes Raising FICA Income Cap

On Jan. 19, the U.S. officially hit its debt ceiling, having spent all of the $31.4 trillion available for expenditures as allocated by the Treasury. In the days since, conversations have become heated about how the country will move forward to avoid a total spending freeze and a financial catastrophe.

-snip-

One politician has come forward with a partial fix, though not all of Congress may agree with him. Democratic Sen. Joe Manchin wants to change the way in which Social Security is funded, notably raising the cap on payroll taxes in order to make the highest earners contribute more to the program’s reserves.

As Manchin told CNN during a recent appearance on the network’s “State of the Union” program, he believes that providing more money for the program in this manner will ensure beneficiaries continue to get payments. This new revenue would also ease government overspending on this major line item, thus — at least partially — alleviating the debt ceiling crisis.

Per the Social Security Administration, every American worker and their employer offers 6.2% of their pay towards the program, up to $160,200 in 2023, while self-employed workers pay a more substantial 12.4% of their wages (since no employer co-pays). However, if you’re a millionaire, you will have met the $160,200 cap around February of every year, per The Hill. When considering the combined Federal Insurance Contribution Act (FICA), which combines Social Security payroll taxes and Medicare payroll taxes, regular employees pay 7.65% and self-employed persons pay 15.3%.

https://finance.yahoo.com/news/manchin-proposes-easiest-social-security-182706704.html
40