"Currently, workers pay Social Security taxes until they make over $147,000. That means if you make $2 million, you only pay the payroll tax on the first $147,000."
This is the best-kept secret in America. Nearly all hourly workers and many receiving a fixed salary haven't a clue that middle managers, executives, founders and savvy investors look forward every year to when their personal earnings jump the tax fence. For the rest of the year they make no further FICA "contributions" until the following January when their SS taxes begin again.
The percentage of covered workers whose earnings exceed the tax max has been relatively flat (about 6%) since the Eighties. But the earnings of those in the upper income scale have skyrocketed. The wage gap between rich and poor is unimaginable for most people. And these are the people dropping endless "contributions" into the world of politics. It is no accident that high-income earners and "special interests" get maximum tax advantages.
"Currently, workers pay Social Security taxes until they make over $147,000. That means if you make $2 million, you only pay the payroll tax on the first $147,000."
This is the best-kept secret in America. Nearly all hourly workers and many receiving a fixed salary haven't a clue that middle managers, executives, founders and savvy investors look forward every year to when their personal earnings jump the tax fence. For the rest of the year they make no further FICA "contributions" until the following January when their SS taxes begin again.
The percentage of covered workers whose earnings exceed the tax max has been relatively flat (about 6%) since the Eighties. But the earnings of those in the upper income scale have skyrocketed. The wage gap between rich and poor is unimaginable for most people. And these are the people dropping endless "contributions" into the world of politics. It is no accident that high-income earners and "special interests" get maximum tax advantages.
https://www.ssa.gov/policy/docs/policybriefs/pb2011-02.html#:~:text=Although%20the%20nominal%20value%20of,constant%20since%20the%20mid%2D1980s.
I e said this before but The Muse of History alone is worth the subscription price!