This article assesses the revenue potential of removing the Social Security payroll tax cap. I do so within an overlapping generations (OLG) model featuring heterogeneous agents who endogenously invest in risky human capital. Removing the tax cap leads to a sizable increase in Social Security revenues, but also produces a decrease in federal income tax revenues. Taking both Social Security and income taxes into account, removing the tax cap does not raise sufficient revenues to offset looming demographic changes. One factor limiting revenue gains is that removing the tax cap reduces aggregate output, with human capital investment playing a central role.

中文翻译：

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人力资本和社会保障税收上限

本文评估了取消社会保障工资税上限的收入潜力。我在一个重叠代 (OLG) 模型中这样做，该模型具有内生投资于风险人力资本的异质代理。取消税收上限会导致社会保障收入大幅增加，但也会导致联邦所得税收入减少。考虑到社会保障和所得税，取消税收上限并不能增加足够的收入来抵消迫在眉睫的人口变化。限制收入增长的一个因素是取消税收上限会降低总产出，而人力资本投资起着核心作用。