Reply #25: what proportion of individuals makes over $109K in WAGE income,

[indurancevile]

do you think?

i understand that $109K is the current cap, but that's beside the point. we were talking about whether or not 90% of wage income is subject to social security taxes.

according to this, only 6% of individuals have income > $100K. That includes investment income as well as WAGE income -- ALL income.

http://en.wikipedia.org/wiki/Personal_income_in_the_United_States

which would suggest that 90% of WAGE income is already subject to social security taxes, since the higher you go in the economic ladder, the more of your income is investment income (capital gains, stocks, bonds, rents, etc.)

it's my understanding that social security was set up to cover 90% of wage income & is regularly readjusted to keep roughly that coverage.