Column: U.S. billionaires are done with Social Security taxes for 2021, but you'll pay all year

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For the vast majority of American workers, the arrival of W-2 forms carry a reminder that they’ll be paying their Social Security tax all year. But for a handful of the richest Americans, that particular burden is already over. From columnist hiltzikm:

Social Security advocates are nervous about President-elect Joe Biden. Should they be?

But only $650,000 of that sum was in salary. The rest was in stock grants of $276.6 million and charges of about $3.35 million for personal use of company aircraft — none of it subject to Social Security taxes. Pichai’s effective Social Security payroll tax rate on his 2019 income: 0.003%.A few words about Social Security taxes.

The payroll tax is separate from income tax because Social Security’s drafters saw value in endowing it with an independent revenue stream. All contributors to the program are eligible to receive benefits, but they’re generally progressive — worth more as a percentage of income to lower-income workers than the wealthy.

 

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