General Discussion

Ms. Toad

(38,607 posts)

3. Not accurate in the details (albeit generally accurate in broad strokes).

Wed Mar 25, 2026, 02:42 PM

Wednesday

The Social Security tax paid by those making under $184,000 is 6.2% (not 12.4% - employees only pay 6.2% - the remainder is paid by the employer, unless the taxpayer is self-employed).

For those making $1 million, the tax rate paid by the employee is 1.1% (.062 x 184,500/1,000,000).

Billionaires is a term that relates to wealth, not income. But for someone earning a wage of 1,000,000,000, the tax rate would be .0011% (both arithmetic and tax attribution errors)

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many a good man Martin68

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MURRAY: Is it true that people making under $184k pay a 12.4% Social Security tax rate? [View all] LiberalArkie Wednesday OP

this is correct Henry203 Wednesday #1

It is correct that there is a cap. Ms. Toad Wednesday #4

Yeah, but the billionaire creates jobs, don't he? 3Hotdogs Wednesday #28

There was a arithmetic error in calculating the "billionaire" percentage Ilikepurple Wednesday #29

It is fundamentally wrong to describe the relative burden on the taxpayer as 12.4%, when it isn't. Ms. Toad Wednesday #30

Slightly Misleading ProfessorGAC Wednesday #2

I believe they are referring to a self employed worker, much like the billionaires are. LiberalArkie Wednesday #7

That May Be ProfessorGAC Wednesday #9

Nope. The percentage for a self-employed worker is 11.45. Ms. Toad Wednesday #32

It's the assumption in the wording. haele Wednesday #12

And the employer may reduce the wages in order to cover his/her half of the FICA. erronis Wednesday #13

Yes. Employers' share of FICA is just another component of labor cost. Ilikepurple Wednesday #23

Certainly Possible ProfessorGAC Wednesday #24

15.3% for most of my adult life as a self employed person. progressoid Wednesday #20

Not accurate in the details (albeit generally accurate in broad strokes). Ms. Toad Wednesday #3

What is a self-employed person pay? 12.4% LiberalArkie Wednesday #8

If I am not mistaken a self-employed person pays 12.4% payroll tax; state of stupid Wednesday #17

Maybe so, I had to always pay the full amount. But that is what Murray was referring to when they said 12.4% LiberalArkie Wednesday #26

15.3% - 12.4% for Social Security and 2.9% for Medicare progressoid Wednesday #21

Nope. 11.4514%. Ms. Toad Wednesday #33

I agree with your distinction of a "billionnaire" (wealth) vs. income (wages, taxable gains, etc.) erronis Wednesday #14

We do our best to fluff the rich and trivialize financial disparity Torchlight Wednesday #5

Benefits are also capped Dave says Wednesday #6

Same Page, Except... ProfessorGAC Wednesday #10

I'd treat dividends the same as earned income Dave says Wednesday #18

I Buy That To A Degree ProfessorGAC Wednesday #25

They could uncap the tax until the funds had a 75 year balance. Captain Zero Wednesday #11

That's a thought. Dave says Wednesday #19

If the cap is raised, then the benefits should also be increased MichMan Wednesday #37

I already pointed that out Dave says Wednesday #39

Double it for those making over $180,000.00 multigraincracker Wednesday #15

For 2026 Social Security wages are capped at $184,500 and it rises just about every year ... aggiesal Wednesday #16

I don't understand the reasoning behind creating a donut hole MichMan Wednesday #38

I was slow to realize tax code favors wealth hibbing Wednesday #22

And if you have your own business or are a 1099 contractor, double that rate! SheltieLover Wednesday #27

No. The rate cited IS the rate for self-employed individuals (after reducing their income to 92.35%) Ms. Toad Wednesday #35

Yes, 12 percent taken out dlilafae Wednesday #31

No. 6.2% is taken out for social security. n/t Ms. Toad Wednesday #34

WTF it is going broke time to tax the rich accordingly..... Historic NY Wednesday #36