Editor,
I have sent the following to U.S. Rep. Rick Larsen and senators Patty Murray and Maria Cantwell:
Q: When do most Americans stop paying Social Security taxes?
A: Never – not even after retiring.
Q: What percentage of their earned income do most Americans pay in Social Security taxes?
A: 6.2 percent
Q: When does, as one example, LeBron James stop paying Social Security taxes?
A: In the second quarter of the first game of each season.
Q: What percentage of LeBron’s earned income does he pay in Social Security taxes?
A: 0.03 percent
Q: When do our senators and congressional representatives stop paying Social Security taxes?
A: Assuming that their earned income is solely from taxpayer-funded salaries, they stop paying into the system no later than mid-September each year.
Q: What percentage of their earned income do our representatives pay in Social Security taxes?
A: Assuming that their earned income is solely from taxpayer-funded salaries, it’s 4.1 percent
This situation is because of the annual cap on Social Security taxes. No taxpayer in America has to pay more than $7,347 per year in Social Security taxes.
That cap applies whether one who works handing out towels in LeBron’s locker room, a congressional representative, or a CEO who runs a Fortune-500 company.
Because of a similar cap on taxes on Social Security benefits, retirees with high incomes pay a lower income tax rate on Social Security benefits than most Americans.
Should retirees with high incomes even draw Social Security benefits? A “means test” could make the system much more fair.
Addressing these issues could result in a fairer system — and help preserve the solvency of Social Security.
To the U.S. representatives, U.S. Rep. Alan Grayson has introduced a bill to “scrap the cap.” Will you support the bill, or, better yet, co-sponsor it?
To the U.S. senators, will you introduce or support or co-sponsor such a bill?
Carl Leonard
Coupeville