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Lifting the current wage cap is another thing that would extend the viability of the SS/Medicare system, with little pain being inflicted on the affected workers (except for those "self-employed"). Obama, however, did the DUMBEST thing possible, which was the "temporary" cut in ALL FICA withholding taxes. Yes he did!
Two points:
1.) I agree with increasing the wage cap to a degree. Yet policy makers must be careful to restructure the outflows at the highest income/benefit levels to avoid unforeseen surges in liabilities. As I previously mentioned, the highest income participants receive the longest duration of benefits as a function of mortality alone.
2.) Any tax cuts can be made up during future periods of low(er) unemployment, of which the macroeconomy will be more capable of dealing with such cost increases.