Higher SS Taxes
Social Security Announces 2.3 Percent Benefit Increase for 2008 – What the drive-by media aren’t publicizing is the other side of the equation, the increase in the income subject to the 12.4% Social Security tax from the 2007 level of $97,500 to $102,000 in 2008. This is an increase in the SS tax of $558 for the 12 million people SSA estimates will be in this income level.
As I’ve long predicted, and will almost certainly happen if the two-headed president is given a third term in the White House, the ceiling on income subject to this tax will be removed entirely, as it was for the 2.9% Medicare tax. This will also be accompanied by a reduction or complete elimination of benefits to people in these higher income levels.