re: 'You earned it, you keep it act' bill would eliminate taxes on Social Security

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No. It doesn't touch taxes between 168K and 250K. It would "fill the trust fund’s coffers" by applying a Social Security tax to all earnings above $250,000.

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The Craig tax would constitute a 12.4% tax hike for employed earners in those two tax brackets.

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You said all earnings, so it wouldn’t just be employed earners. It would be all earners. Just like the Medicare surtax/net investment tax, the source of the income doesn’t matter, they get you either way (limited exceptions like S Corp active participation).

Your thinking is correct though, it’s simply a high income tax, but they don’t have to raise the marginal tax rates.

And it’s not a permanent fix to the problem. The carrot is just to gain support from current retirees that likely have other income that they won’t pay tax on benefits, so they can put a permanent flat tax on earnings above $250k. Again that Medicare tax threshold hasn’t moved since they came up with it. They are sliding that SS tax threshold swiftly. They will meet in the next 10 years, so employment income will be subject up to $250k, and ALL income above that.

People don’t even really think about FICA in terms of taxes. It’s a compulsory 15.3% tax before income taxes are even considered, that everyone pays. I looked at a return recently, this poor girl made $25k in only self employed income, didn’t take any deductions, and wound up with a $5k tax bill when filing, $3800 was FICA. Those are the people I really feel for. She was barely making a living, but still reported all of her income and didn’t even think to take deductions. Wound up on a payment plan. Meanwhile people making what she makes in welfare, don’t pay any taxes, and take her $3800 with them to Costco.