Ask Terry Questions cap on taxable wages for social security

cap on taxable wages for social security

By Terry Savage on January 06, 2025 | Wild Card

Removing the cap on taxable wages on social security is a popular recommendation to increase its funding. But wouldn’t that also increase the employer’s contribution which would be passed on to the consumer, increasing inflation?

Terry Says

Yep — all taxes increase costs, and are passed on to the ultimate user.

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