Reply #56: I agree with removing the cap with one caveat

[exboyfil]

It should be at a reduced rate that reflects that they do not get benefits on that additional payment. Right now the $50K to $105K folks carry the weight of Social Security. Those below $50K actually do better actuarially by contributing to Social Security. Those above about $50K, because of the reduced benefit funding formula, do worse. You don't want really high incomes to be calculated into the funding formula because that would cause too many distortions. To expect those making $50 to $105K to carry the load alone is ridiculous.

I would be careful with additional means testing of Social Security. I think you want to encourage individuals to save for retirement. Frankly at some point on penalizing me for my 401k money, I will decide to stop working earlier and draw down that money to avoid this needs testing. With a spouse or a roommate, I calculate that I could have a survivable retirement even without my savings. I would rather have my freedom at an earlier age than be penalized for being thrifty my entire life.

Everyone should be in the system starting with their first paycheck. No one should be excluded. The way the funding formula works (approx. 90% benefit calculation on incomes up to $10K) you can game the system for a pretty nice retirement check. Some ratios to consider (assuming 35 years of earning at the same level calculated and 6.2% withholding by you and your employer):

Those making up to $9132 20.7% of yearly benefits/payments
Those making up to $55032 9.6% of yearly benefits/payments
Those making up to $106,800 6.6% of yearly benefits/payments

That last group probably also falls under pseudo needs testing (taxing Social Security benefits).

In general you cannot impact your Social Security check after you have 35 years of good earnings.

Note you could make $32,000 for 10 years on S.S. and be entitled to a check the same size as someone who worked 35 years at $9100. Makes sense to retire from a system outside of Social Security at 55 and get that Social Security job until retirement. The payback is huge.