Sure, but the idea is not to have tax loopholes (the idea, not the practice). If you paid 7% on self employment, what about couple employment? Could you avoid paying half your social security taxes by being self employed? Would companies go to contractors-only just to avoid having to shell out that 7.15%? (keep in mind that if you're pricing yourself correctly, you should end up earning just as much either way when consulting). The government is getting the same amount either way as it is, the question is how it's presented, not where it's coming from (not really; the 7.15 percent you don't have to see for trad employment is still coming out of your salary, as it's part of the cost of employing you).

Basically, if they're going to give you a bonus for self-employment, this probably isn't the right place for it.

Now, making SS regressive by only taxing the first XX (plus the extra regression of more middle and higher class people living longer)? That should go.