6 ms·
Pretty much, yea. Pedantically, only the social security part of FICA is capped. Medicare you still pay 1.45-2.35%, uncapped. But the 6.2% for social securit
by dmoy 2y ago
Pretty much, yea.
Pedantically, only the social security part of FICA is capped. Medicare you still pay 1.45-2.35%, uncapped. But the 6.2% for social security is capped, and thus for the top end of the 1% ends up being a miniscule tax.
If you get rid of the social security cap, get rid of mortgage interest deduction, and add a wealth tax, that more or less solves the 2034 debt to <100% of GDP right there.
- AnimalMuppet 2y agoHuh. I thought that Medicare had a cap, too, just a higher one. Also note that FICA is only on "earned income" (not interest, dividends, capital gains, rental income...), and is not subject to the standard deductions.