I was thinking about our dear government and its policies.
I think they should end the ceiling limit on FICA taxes on income. Right now the ceiling is $106,800 – after you have reached this level in income, no more Social Security taxes are taken from your income (rate currently is 7.65% – ½ paid by wage earner & ½ paid by employer – for total payments of 15.30 %) – which means that a total of $13,243.20 is the max received by Social Security for those earning over $106,800.
This way, the people like the hedge fund managers, earning over $100,000,000 (100 million) would pay more into SS & Medicare. This would also apply to other executives: CEO’s, CFO’s, etc. Right now, the people earning the $100 million or more, their FICA rate becomes 0.0066% – less than 1% of their income is contribution to SS.
So, FICA taxes would not have to be increased on those making less than the limit now of $106,800 – be more of a level playing field. FICA payment limit currently is $6,621.60 on income up to $106,800. If the cap was removed, then those making $100 million would contribute $7,650,000 to Social Security and the company would contribute the same, so SS would receive $15,300,000! So, the hedge fund manager’s making $600 million, would contribute $45,900,000 and the total received by SS would amount to $91,800,000 when you would include the 7.65% paid by the employer!!! Wow!!!
Maybe this would trim the bonus’ and excessive payouts in companies if they had to pay FICA on the whole amount?
But, of course, the privileged will be untouched and the middle class will continue to carry the poor and the rich forever, or until they give up and become the poor. And at this rate, there’s a fine line for some.
