Originally posted by WilMac1023:
You take 15% of $100,000, it's a whole lot less hurtful than 15% of $30,000.
Take it a step further...
Joe makes $200,000 a year. He pays about 7% into Social Security...of $97,000, not $200,000.
So Joe is only paying about 3.5% of his income into Social Security.
Bob makes $30,000. He pays 7% of 30,000. Bob is paying 7% of HIS income. Double the *rate* that Joe is paying.