Saving Social Security has been much in the news lately. Perhaps we should eliminate the income level at which folks no longer contribute to Social Security.
Presently, folks earning less than $106,800 a year pay 6.2 percent of their earnings into Social Security. However, folks earning more than $106,800 a year have no more Social Security deductions after that dollar level is reached.
For example, someone making $400,000 per year pays on only 1.7 percent of his or her income. Someone making $1,000,000 per year pays on little more than half of 1 percent of his or her income. These are folks who could most afford to pay into Social Security for the entire year.