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Currently once a person's income exceeds $106,800 per year (the cap for 2009 and 2010), the FICA tax of 6.25% goes away. Essentially this is a negative tax bracket where FICA tax rate goes from 6.25% to 0.00% once incomed exceeds $106,800. If the cap was removed, then the FICA tax would remain at 6.25% regardless of income level.
I'm wondering how much this would help with Social Security where 2037 is the predicted year SS goes bankrupt if no changes are made.
I'm wondering how much this would help with Social Security where 2037 is the predicted year SS goes bankrupt if no changes are made.