The topic of Social Security taxes is a multi-layered subject.

This program is paid for by the taxes of hard-working Americans across all age groups. Some states still tax benefits in retirement, while others don’t.

There are many proponents of higher taxes to cover Social Security. Advocates of this position claim it would save the program from insolvency. However, future tax increases could potentially hurt retirees more than help them — all without doing much to save the Social Security Trust Fund.

The Downside of Increasing Social Security Taxes

In 2025, taxpayers could be forced to pay more into Social Security. With the taxable income cap set to jump to $174,900, it’s a modest increase that could have a major impact — and unintended consequences.

The problem is that this income level counts as middle class in many big cities. What’s more, the ultra-wealthy still won’t be paying proportional to their income.

While some may argue that these individuals also don’t get benefits proportional to their income, the fact remains that the tax burden falls largely on the middle class and the poor. These individuals will pay hundreds and even thousands more throughout the year.

At a time when the economy is tough, this seems like a counterproductive move. A true solution could be to focus on yearly Cost-of-Living Adjustments (COLAs). These increases would put payments at the level they should be, adjusted for inflation.

This is the cause that we here at NORA advocate. Do you support us? Then sign our petition. We would greatly appreciate your signature. For more content like this, follow us on Facebook and Twitter.