The system has lifted billions of people out of poverty, but it doesn’t work particularly well for people without capital. This began with a capital gain tax cut enacted under Jimmy Carter and climaxed in the 2017 extravaganza under Donald Trump. Suppose we divert Social Security taxes on the first $10,000 a year of income into a savings account invested in a giant stock and bond index fund. Like Social Security benefits, the account would be inaccessible before retirement age; unlike existing Social Security benefits, it would be an asset that could be handed down to the next generation. First, by doubling the Social Security wage base (now $137,700) without any upward adjustment in monthly benefits; we would, in other words, be making the already progressive Social Security system even more progressive.
Source: Forbes June 06, 2020 00:45 UTC