Editorial: Social Security-Just Lift the Cap!

Thursday, March 16, 2017 - 3:30pm
Robert Butler

Social Security Contributions to the Trust Fund WITH CAP

 

and WITHOUT CAP!

 

 

2014 Tax info from IRS (https://www.irs.gov/uac/soi-tax-stats-individual-statistical-tables-by-size-of-adjusted-gross-income)

 

 

Social Security comparison using 2014 tax figures.

Current rate is 6.2%; cap is $127,200

 

 

 

This is the way it currently works:

Income Levels

Number of Taxpayers

Salaries & Wages

Amount Subject to Social Security

Contributions

$1 to $5,000

7,400,467

$391,560,000

$391,560,000

$24,277,000

$5,000 to $10,000

9,151,598

$3,496,485,000

$3,496,485,000

$216,782,000

$10,000 to $15,000

9,264,373

$15,104,777,000

$15,104,777,000

$936,496,000

$15,000 to $20,000

9,184,654

$36,854,202,000

$36,854,202,000

$2,284,961,000

$20,000 to $25,000

8,492,339

$57,743,708,000

$57,743,708,000

$3,580,110,000

$25,000 to $30,000

7,596,619

$78,238,111,000

$78,238,111,000

$4,850,763,000

$30,000 to $40,000

12,779,113

$214,586,388,000

$214,586,388,000

$13,304,356,000

$40,000 to $50,000

10,010,599

$273,412,005,000

$273,412,005,000

$16,951,544,000

$50,000 to $75,000

16,645,564

$746,282,701,000

$746,282,701,000

$46,269,527,000

$75,000 to $100,000

11,136,071

$772,570,399,000

$772,570,399,000

$47,899,365,000

$100,000 to $200,000

15,452,930

$1,775,890,732,000

$5,053,108,110

$313,292,700

$200,000 to $500,000

4,409,695

$1,168,977,449,000

$0

$0

$500,000 to $1 Million

713,890

$497,311,777,000

$0

$0

$1 Million to $1.5 Million

150,759

$193,760,633,000

$0

$0

$1.5 Million to $2 Million

63,542

$118,416,459,000

$0

$0

$2 Million to $5 Million

88,662

$292,257,099,000

$0

$0

$5 Million to $10 Million

21,782

$162,426,496,000

$0

$0

$10 Million OR MORE!

13,419

$438,651,059,000

$0

$0

 

 

This is the way that it should be:

Income Levels

Number of Taxpayers

Income

Social Security that would be paid with cap eliminated!

$1 to $5,000

10,262,509

$27,798,832,000

$1,723,528,000

$5,000 to $10,000

11,790,191

$92,268,494,000

$5,720,647,000

$10,000 to $15,000

12,289,794

$157,142,081,000

$9,742,809,000

$15,000 to $20,000

11,331,450

$201,039,878,000

$12,464,472,000

$20,000 to $25,000

10,061,750

$229,098,251,000

$14,204,092,000

$25,000 to $30,000

8,818,876

$245,043,136,000

$15,192,674,000

$30,000 to $40,000

14,599,675

$514,388,528,000

$31,892,089,000

$40,000 to $50,000

11,472,714

$520,672,080,000

$32,281,669,000

$50,000 to $75,000

19,394,648

$1,207,240,353,000

$74,848,902,000

$75,000 to $100,000

12,825,769

$1,124,785,053,000

$69,736,673,000

$100,000 to $200,000

17,501,251

$2,391,706,016,000

$148,285,773,000

$200,000 to $500,000

4,978,534

$1,446,121,656,000

$89,659,543,000

$500,000 to $1 Million

834,981

$574,614,621,000

$35,626,107,000

$1 Million to $1.5 Million

180,446

$221,506,276,000

$13,733,389,000

$1.5 Million to $2 Million

77,065

$134,619,649,000

$8,346,418,000

$2 Million to $5 Million

109,475

$330,977,452,000

$20,520,602,000

$5 Million to $10 Million

26,579

$183,753,054,000

$11,392,689,000

$10 Million OR MORE!

16,733

$508,899,697,000

$31,551,781,000

 

Total Contributions Without Cap $626,923,857,000

With Cap $136,631,473,000

Difference $490,292,384,000

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How long would it take for social security trust fund to be safe and solvent if the Cap is removed? What would it hurt the wealthy? Keep in mind that these figures don't include the employers' contributions that match the withholding figures.

 

Isn't it time for Congress to lift the caps?

 

Robert Butler

P.O. Box 193

Marmaduke, AR 72443

501-827-3792

 

 

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