How to save Social Security by cutting taxes.

House Minority Leader John Boehner (R-Ohio) signaled that raising the Social Security retirement age to 70 is an option that Congress must consider as it looks at overhauling the expensive entitlement program. For someone who touts lowering taxes as the solution to all problems this is an interesting solution. First to note is that only someone who does not do physical labor for a job would consider such an idea. Second, since Social Security is only applied to the first $106000 of earned income (wages, tips, bonuses, salaries and commissions) it is a tax primarily on the middle class and lower. A fireman earning $106000 per year would pay $15900 (split by employer and employee unless self employed, and then covered totally by employee) in Social Security Tax. Lloyd Blankfein, CEO of Goldman Sachs would also pay $15900 per year on an income in excess of $500,000,000 while being bailed out by taxpayers. Those in the highest tax bracket, whose income is largely dividends and stock options will not pay on those dividends and stock options and never pay more than the $15900 per year. Boehner’s approach would add up to an additional $79,500 over the five years in new taxes to those earning $106,000 or less per year. While it is true that the same amount would be added to those who earn more than the $106,000 per year, the percentage of income taxed decreases significantly as the salary increases. I propose a very Republican idea, lower the taxes. Why not reduce the Social Security tax to 12% (6 by employee and 6 by employer) but apply it to all income with no top limit. That way someone like Lloyd Blankfein with an income in the neighborhood of $1/2 billion would pay around $6mil in Social Security and the fireman would see his tax burden decrease by $3200. And they both could retire at 65. Not only would Social Security be saved, so would your back.