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Joe sees a solution for low COLAs and Social Security's long-term solvency issues. Currently the highest paid employees, including CEO of top U.S. companies only pay Social Security taxes on the first 2,900, even when they pull in multi-million dollar salaries. "The future of Social Security would be brighter, if the taxable maximum earnings to which the Social Security payroll tax is applied would include the high earners," Joe says..Unlike the rest of our tax system, which is progressive, meaning the lower the income, the lower the tax rate that people must pay - Social Security payroll taxes are regressive. The first dollar of earnings is taxed for Social Security, and all workers pay 6.2% tax on earnings - an amount that is matched by employers - but only on the first 8,500 in earnings. But because of the taxable maximum cap, the highest paid workers, like CEOs of major corporations who receive millions in wages and even Member of Congress, are pocketing a huge tax break, 6.2% of every dollar earned over 8,500..The Congressional Budget Office recently reviewed a proposal that would boost the taxable amount of Social Security benefits, as one of the options for Congress to consider to reduce the federal deficit. The proposal, which the CBO has reviewed in prior versions of its Options to Reduce the Deficit, would tax Social Security and Railroad Retirement benefits the same way that distributions from defined benefit pensions are taxed. This is expected to increase the taxable income of older Americans..Most seniors and their family members feel stymied by trying to figure out which plan would be the best choice. You may also worry that pre-existing health conditions make it difficult to change plans. That's not the case but either way, you will benefit from discussing your situation with a Medicare benefits counselor, not an insurance agent. Free, unbiased counseling is available through your State Health Insurance Assistance Program which operates in almost every area of the country. Local Area Agencies on Aging can refer you to counselors who help you learn about and understand your health plan choices, and to make a switch..Lawmakers on both sides of the aisle agreed at Wednesday's hearing that displaying the full Social Security number on Medicare cards puts seniors at risk for identity theft. However, the process of removing the numbers is costly and complex. Tony Trenkle, Director for the CMS Office of Information Services stated, "It's going to be a massive undertaking if we go down this road." He explained that the process would require a technology system update and massive education efforts for beneficiaries, providers, and business associates..Reps. Steven Rothman and Michael Michaud signed on to Rep. Charlie Gonzalez's CPI-E Act. The co-sponsor total is now at 33..For most Americans, the prices of essential prescription drugs are increasing far too rapidly for family budgets to sustain. Many Americans are being forced to choose between paying household bills and purchasing life-saving medications. The nonpartisan Kaiser Family Foundation issued a poll last October reporting that 77% of Americans - Democrats, Independents, and Republicans - identified the increasing prices of prescription drugs as their number one health concern.The American people are absolutely right..Use distributions from Roth accounts to minimize taxation of Social Security benefits. Unlike distributions from traditional IRAs and 401s, qualified distributions from Roth IRAs - those taken when you are over 59½ and the contributions were made more than five years ago - will not subject your Social Security benefits to taxation. To minimize taxation of your Social Security benefits, consider taking distribution from your Roth IRA, and let your Traditional IRA or 401 grow until you reach age 70 and a half. Once you reach that age, distributions of Traditional IRAs and 401s must start by April 1 of the year following..Which costs are rising fastest for you? Take TSCL's annual Senior Survey, visit.