PSA

The Social Security income threshold is about $176,000. In simpler terms, no income above this amount is subject to Social Security taxes. Anyone fretting about the future of available funds should take note of the billions of dollars we could raise by removing the cap entirely. That there is a threshold cap is one of those things that most people paying into Social Security don’t know about. For most of the people I know, this means you’re paying 6.2% of your total income, compared to those who make a staggering amount more. You’re paying 6.2% of every dollar you earn while the wealthier contributors are not. And of course since I recognize that no system is without complexity, there are issues inherent in raising the threshold. {Such as dropping the additional burden on the employer.} I have this weird feeling that if the average person had this explained to them one on one, their attitudes about the lack of equity regarding Social Security pay-ins would be quite different.

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