Currently individuals only pay social security taxes on the first $132,900 earned in 2019.
It is my understanding that Social Security would be totally solvent long term if there was no maximum taxable earnings. That may not happen; however, I do want to suggest something that could easily happen.
If I were to design a "fair" tax law I would raise that maximum taxable earnings to $150,000 and also increase Social Security benetfits to those that pay in up to that new threshold.
I would create a middle class and upper middle class tax donut where no social security tax would be paid on individual income between $150,000 to $500,000/year.
I believe all earned income over $500,000/year should be taxed. Some of that money should be used to raise SSI payments so that millions of Americans aren't living in poverty on $771/month. For most of those people $771 is their only income for the month as any additional income usually decreases the payout.
Some of that money should also be used to help supplement the Social Security and Social Security Disability Insurance payments of people with lower net worths. For example, if any elderly, non-wealthy person is having difficulty affording winter heat costs, they could apply to receive a supplement during the winter months to help pay for that if they need it.
Our current healthcare system is designed to financially bankrupt everyone. Anyone Medicare eligible but not currently eligible for Medicaid should be given a supplement to help pay their monthly healthcare premium until we can move to a fully funded single payer system for all. For example someone receiving a $1,000/month social security check may currently be paying over $300/month for healthcare premiums. That is a substantial percentage of income going to just healthcare especially if Social Security is the only source of income. For people that regularly go to the doctor or have larger copays on prescriptions half of their monthly income could easily be eaten up just on healthcare related expenses alone. Reducing the healthcare costs on seniors and the disabled would reduce poverty and also mean less would financially need supplements to help cover the cost of other necessities such as winter heating. It would also increase the amount of disposable income many seniors and disabled people would have to spend in the economy on a monthly basis. Overall, that is a great stimulus for the economy.