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Simple Way to Save Social Security

Date and Time  - Jun. 23rd, 2011, 02:45 pm

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FICA is on of the most regressive taxes on Earth. A person making $20,000/yr pays 7.65% of their paycheck to FICA, while a person earning $2,000,000/yr only pays 1.78% of their paycheck to FICA.

FICA funds Medicare and Social Security with 1.45% of each paycheck going to Medicare and 6.2% going to Social Security. However, the 6.2% to Social Security is only payed on the first $106,500 earned. After that point only the 1.45% for Medicare is taken out. This amounts to a enormous and rarely mentioned tax break for the rich. Forget about raising the retirement age, removing the FICA cap would fix Social Security overnight.

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fica medicare money politics social security taxes