We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

It's Time for Millionaire's to Contribute Their Fair Share to Social Security

1 38 150
19.02.2020

Today is just another day for millionaires and billionaires, but for the rest of American’s workers—it’s significant. February 19th, 2020 marks the date when America’s wealthiest stop paying into Social Security for the rest of the year. This is because Social Security payroll contributions are capped at $137,700 in annual wages, a ceiling the average millionaire hits on this very day. Everyone else keeps contributing to the program through December 31st.

"Normal Americans pay social security tax on every cent of income they earn throughout their entire lives, but millionaires like me pay it on just a fraction of our earnings."

A worker earning $50,000 contributes to Social Security all year, with an effective tax rate of 6.2 percent. However, an income earner making $1,000,000 stops paying Social Security taxes today. This person’s effective tax rate would be just 0.8 percent. As the Center for Economic Policy Research pointed out, “The burden of Social Security taxes falls more heavily on those who make less.”

Some of America’s wealthiest recognize the inherent unfairness in the system. “Normal Americans pay social security tax on every cent of income they earn throughout their entire lives, but millionaires like me pay it on just a fraction of our earnings,"said........

© Common Dreams