George Will had an article in the May 5 edition of Newsweek titled “Questions for Obama”. One question was;
“You favor eliminating the cap on earnings subject to the 12.4 percent Social Security tax, which now covers only the first $102,000. A Chicago police officer married to a Chicago public-school teacher, each with 20 years on the job, have a household income of $147,501, so you would take another $5,642 from them. Are they undertaxed? Are they rich?”
I have a question for George – Do you know the $102,000 FICA withholding cap is per person, not per family? If a couple each makes the same income, their current total cap is $204,000. So your Chicago couple would need quite a few raises before they even come close. In 2005 (last census numbers) shows that only 2.67% of households made more than $200,000. Now, how does that impact your view on eliminating the FICA withhold income cap?