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discntnt_irny_srcsm

(18,720 posts) Mon Aug 27, 2018, 05:57 PM Aug 2018

Why is there a ceiling on wages subject to SS & medicare withholding? [View all]

I hear all about how there's no money for 'medicare for all' type programs.
If folks with wages over $128,400/year had their wages over that amount taxed at the same rate (6.4% SS and 1.25% medicare) wouldn't there be a lot more of that could be done to help people in need?

Don't forget that those contributions are matched by the employer.
How about taxing dividends, capital gains, rents and interest income at the same rates?

20 replies

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Why is there a ceiling on wages subject to SS & medicare withholding? [View all] discntnt_irny_srcsm Aug 2018 OP

Gee Oh Pee. n/t rzemanfl Aug 2018 #1

Because the people who don't need it make the laws. shraby Aug 2018 #2

I assume it's because there is also a ceiling on max SS monthly payment. honest.abe Aug 2018 #3

Social security uses a bendpoints formula to figure payouts Yupster Aug 2018 #8

That sounds reasonable.. honest.abe Aug 2018 #11

Indeed. If that cap was lifted it would make social security drray23 Aug 2018 #4

Actually, unless you cap the benefits, even that doesn't resolve Hoyt Aug 2018 #5

Thanks, I stand corrected on medicare discntnt_irny_srcsm Aug 2018 #10

Benefits are already capped. Nt lostnfound Aug 2018 #18

If the ceiling on wages is raised enough, Congress KCDebbie Aug 2018 #6

The Cap only applies to SS, not the Medicare deduction leftieNanner Aug 2018 #7

Thanks For That ProfessorGAC Aug 2018 #20

Yup. Lift the cap, problem solved. onecaliberal Aug 2018 #9

because wealth makes people sick - greed takes over. they can NEVER have enough NRaleighLiberal Aug 2018 #12

Yeah, it's the golden rule discntnt_irny_srcsm Aug 2018 #15

Because rich people run the U.S. left-of-center2012 Aug 2018 #13

'cause rich people write the laws shanny Aug 2018 #14

Regarding social security, that was FDR's purposeful design eallen Aug 2018 #16

Agreed - also, pressure to destroy it would only increase if cap was eliminated lostnfound Aug 2018 #19

because it is basic insurance. no more, no less. mopinko Aug 2018 #17