Re: Does George Will Understand Social Security Taxes?

Apr 30, 2008 2 Replies


A couple who were both W-2 employees and have a household


> income of $147,501 would pay an additional $5,642 in Social
> Security taxes if the $102,000 cap on earnings was
> eliminated.
>
> This is wrong on so many levels, it is hard to know where to
> start.

One question I have, is that if they make all wage income subject to social security, would they then lower the tax rate from 6.2% (or 6.2% times two)?


Second, Will assumes that the "household income" comes all
> from wages.

For most households, that is true.


There's such a gap in projected Social Security liability vs receipts, there is no way they'd lower the rate. Raising or eliminating the wage cap is a step to closing the gap. Joe

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Of course not; that's the point of removing the limit.

If they do remove the limit, will they base benefits on the amount subject to the tax?

Seth

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