All Americans with annual incomes of up to $117,000 are taxed at a rate of 6.4% for Social Security tax. Any income above $117,000 is not taxed. Given the poor overall fiscal state of our social security system, this limit does not seem practical. In addition, it seems to unjustly punish the middle and low income wage earner due to the fact that they pay the tax on 100% of their earnings. At the same time, the high income individual earning $1 million will pay the tax only on the first $117,00 or barely on just 12% of their earnings. Given the widening income gap in our country, this limit of $117,000 should be eliminated or significantly increased to say $1 million. In addition, this tax should be on all earnings - bonuses, deferred comp, stock options, etc..
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