John Edgar For Colorado's 5th

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Proposal: Amendment to Social Security Tax Contributions

Proposed by: John Edgar, Candidate for United States House of Representatives, Colorado’s 5th Congressional District

Introduction:

John Edgar, Candidate for US Congress in Colorado’s Fifth District, proposes an amendment to Social Security tax contributions. This amendment aims to uphold the principles of fairness, sustainability, and fiscal responsibility within the program.

Key Components of the Proposal:

  1. Suspension of Contributions Thresholds:

      – The suspension of contributions threshold will be $168,800 for single filers and $250,000 for married couples filing jointly and remain at these levels through the 2030 tax filing year.

      – For incomes up to these thresholds, the contribution rate will be fixed at 6.2% for employees and 12.4% for self-employed individuals.

  1. Introduction of Progressive Contribution Structure:

    – Contributions will be reintroduced progressively for incomes exceeding $500,000 for single filers and $1,000,000 for married couples filing jointly.

  1. Progressive Contribution Rates:

   – For incomes above $500,000 for single filers and $1,000,000 for married couples filing jointly, a progressive contribution rate will be applied.

    – The progressive contribution rate will start at 1.55% for employees and 3.1% for self-employed individuals and incrementally increase by 1.55% for employees and 3.1% for self-employed individuals for every additional $125,000 for single filers and $250,000 for married couples filing jointly until reaching the standard rate of 6.2% for employees and 12.4% for self-employed individuals.

  1. Cap on Highest Rate:

      – The highest contribution rate will be capped at $99,999,999. Any and all annual income exceeding this $99,999,999 cap will not be subject to Social Security Tax Contributions.

  1. Inclusion of Investment Income and Adjustments for Depreciation Offsets:

     – Contributions to Social Security will be extended to include investment income and capital gains. Additionally, contributions will be adjusted based on ordinary income before depreciation offsets, ensuring fairness in the Social Security tax system.

Income Levels and Associated Rates for High-Income Earners:

– For incomes between $500,000 and $625,000 for single filers:

  – Employee rate: 1.55%

  – Self-employed rate: 3.1%

– For incomes between $625,001 and $750,000 for single filers:

  – Employee rate: 3.1%

  – Self-employed rate: 6.2%

– For incomes between $750,001 and $875,000 for single filers:

  – Employee rate: 4.65%

  – Self-employed rate: 9.3%

– For incomes between $875,001 and $99,999,999 for single filers:

  – Employee rate: 6.2%

  – Self-employed rate: 12.4%

– For incomes between $1,000,000 and $1,250,000 for married filing jointly filers:

  – Employee rate: 1.55%

  – Self-employed rate: 3.1%

 – For incomes between $1,250,001 and $1,500,000 for married filing jointly filers:

  – Employee rate: 3.1%

  – Self-employed rate: 6.2%

– For incomes between $1,500,001 and $1,750,000 for married filing jointly filers:

  – Employee rate: 4.65%

  – Self-employed rate: 9.3%

– For incomes between $1,750,001 and $99,999,999 for married filing jointly filers:

  – Employee rate: 6.2%

  – Self-employed rate: 12.4%

Rationale:

This comprehensive amendment ensures stability and predictability for taxpayers while guaranteeing necessary funding for the Social Security program. By introducing a progressive contribution structure for higher-income individuals, capping the highest rate, and including investment income while adjusting for depreciation offsets, this amendment upholds the principles of fairness and equitable distribution of tax burdens.

Conclusion:

This amendment will strengthen the Social Security program and ensure its sustainability for current and future generations. Stakeholders are encouraged to consider the proposal’s merits and engage in constructive dialogue to secure the long-term viability of Social Security.

For further inquiries or feedback regarding this proposal, please contact John Edgar, Candidate for US Congress in Colorado’s Fifth District.

Thank you for your attention to this crucial matter.

John Edgar  

Candidate for US Congress in Colorado’s Fifth District

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