Currently, the FICA Social Security Tax is limited to only the first $113,700 worth of wages on earned income. As it is now, people who make any earned income (from wages or income from a business or profession) pay no such tax on income that is beyond this set cap, and any income people earn from investments is exempt altogether. The Medicare Tax is currently limited to $200,000 for individuals, $250,000 for couples filing jointly, and $125,000 for couples filing separately. The result of these taxation caps is that tax burden for Social Security and Medicare is not fairly spread to all taxpayers, but is felt only by those with the least to spare. Removing the caps will help solve the deficit and tax inequality.
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