How Much Money Is Untouched by the Payroll Tax
Social Security tax was initiated in 1937. Since then, it has covered 92% of earnings. Sadly, this percentage has fallen steadily. Based on a study made by the Congressional Research Service, in 2000 and since then, for example, the amount of income that was taxed fell to 83%.
It’s important to consider the fact that these numbers represent earned, not unearned income. Unearned income, such as investments, are the bread and butter of many high income households. They represent a large portion of their income yet they are not subject to payroll tax.
With that in mind, are the rich costing Social Security?
