Cap not needed for the wealthy | LETTER TO THE EDITOR
July 18, 2011 · Updated 11:46 AM
To the editor:
Representative Boehner and President Obama arm wrestle over program cuts and taxes and in the process threaten Social Security, the safety net of the elderly.
Strange to say, neither the Republicans nor the Democrats point out an obvious, though not well-known, leak in the system: the current cap on Social Security contributions.
In 2011, anyone earning up to $106,800 pays into the system at the rate of 4.2 percent for the entire year.
However, those earning more than
$106,800 do not pay into Social Security on the earnings they make over that amount. (Google: Social Security Cap).
If, for example, an employee earns $213,600 this year, around the middle of the summer he/she stops contributing. This is a nice bonus for the wealthiest wage earners at a time when the Social Security system is under attack. The cap should be eliminated. Senator Patty Murray, Senator Maria Cantwell and Representative Rick Larsen, please speak up on this issue.