Any debate about Social Security will at some point devolve to five words: “Raise the cap, problem solved.”
There are two things that you need to know about this slogan.
- It is false; and
- Even if it were true, the policy option is simply a bad idea.
According to the Congressional Budget Office and the Social Security Administration, completely eliminating the cap solves about 50-70% of the financing gap, which is about halfway to the meaning of the word 'solved.'