If we applied the Social Security payroll tax to income above $250,000, we could not only extend the solvency of Social Security for decades, we could expand the program.
Keep in mind that social security’s return for to earners (say $100k or more) is like 2%… compared to the 8% the market can return. That’s a 6% compounding opportunity cost, which is pretty big. Plus, the money isn’t invested efficiently. So from the POV of the people he’s proposing to tax, the government is going to steal their money, invest in inefficiently, and then give it to other people. And that’s America’s plan for handling old age. Force productive people to pay for themselves and for everybody else.
Why should a person be concerned about earning more money or paying for retirement when they believe the government will send them a check?