General Discussion
In reply to the discussion: This message was self-deleted by its author [View all]AnotherMcIntosh
(11,064 posts)You recognize that there is a cap for SS taxes.
You recognize that employees pay "7.65%" on wages up to the cap.
You also recognize that the self-employed pay "15.30%" on net earning from self-employment up to the cap.
Yet, you pretend to believe that regardless of the cap, that "Everyone pays the same percentage."
For 2012, the maximum taxable earnings amount for Social Security (OASDI) taxes is $110,100. Obviously, when an executive employee earns twice the amount of the cap as a salary, or $220,200, the percentage on the executive's earnings of $220,200 is 1/2 of "7.65%" and not "7.65%." 1/2 of 7.65% = 3.825%.
Also obviously, when an executive employee earns twice the amount of the cap as a salary, or $220,200, and receives another $220,200 as capital gain, or a total of $440,400, the percentage of the tax on the executive's income is 1/4 of "7.65%" and not "7.65%." 1/4 of 7.65% = 1.9125%.
An executive who pays 1.9125% SS taxes on income under such circumstances is not paying the same percentage as those who earn less than the cap as wages and pay "7.65%" SS taxes on their earnings.
Your insult ("What part of 'percentage' do you not understand?"
just shows your ignorance or your pretended ignorance.