The Day Million-Dollar Earners Get Richer by Stiffing Social Security |
CounterPunch Exclusives
CounterPunch Exclusives
The Day Million-Dollar Earners Get Richer by Stiffing Social Security
Photograph by Nathaniel St. Clair
The vast majority of workers in the United States pay income and payroll taxes on all of their earnings throughout the year. For most, this includes an ever-present 6.2 percent employee-side payroll tax for Social Security, the vital program that provides retirement, disability, and survivor benefits to millions.
On March 9, however, those with wage and salary earnings of a million dollars a year will be relieved of paying into Social Security for the remainder of 2026. This is because the Social Security payroll tax applies only to such earnings up to a fixed annual cap, known as the taxable maximum. The maximum is calculated each year by the Social Security Administration using a formula that adjusts it in proportion to the national average wage index. In 2026, the taxable maximum is $184,500. This cap effectively allows higher earners to retain more of their income, even as lower earners continue to contribute to this critical public benefits program throughout the year.
Why is it that those who are........