I need an Econ whiz to decipher this for me!?
I'm a psych major so this stuff isn't my strong point. But I was reading an article today about whether or not the Democrats--now that they have a chance--would get serious about fixing Social Security. And the article said that one sure fix would be to: "eliminate the $90,000 income ceiling for individuals and for small corporations." I can't figure out what they mean by this. Can you tell me in layman's terms? Thanx!
Answer:
Anytime economists talk about an upper limit on something they call it a ceiling.
So this is for your social security contributions. That once your income reaches $90,000 you pay no more. Currently if you make $50,000 you would pay less than someone who earns $80,000. But those who earn $90,000, $100,000 or $500,000 all pay the same, the maximum social security tax. The suggestion is those earning over $90,000 should continue to pay more.
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Answer:
Anytime economists talk about an upper limit on something they call it a ceiling.
So this is for your social security contributions. That once your income reaches $90,000 you pay no more. Currently if you make $50,000 you would pay less than someone who earns $80,000. But those who earn $90,000, $100,000 or $500,000 all pay the same, the maximum social security tax. The suggestion is those earning over $90,000 should continue to pay more.
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