The 7% “Earnings Cap” Increase–What Will it Mean in the Long Run?
As most high-earners–and certainly self-employed individuals–are aware, 2017 will bring a substantial increase in the amount of earnings subject to Social Security taxation. Compared to recent years, the increase in the cap is significantly higher–$8700, or 7.3%–and will result in employees and employers paying 6.2% on earnings exceeding the 2015 cap of $118,500. But what will it mean in the long run for Social Security’s solvency problem?
Investopedia’s Amy Fontinelle takes a look at the solvency issue and offers an assessment of this “earnings cap” increase terms of the overall problem. Read her article here…
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