Who’s Above the Social Security Payroll Tax Cap?

Nicole Woo, Janelle Jones, and I have a short CEPR report out today with data on the share of the U.S. workforce earning above the Social Security payroll tax cap, currently set at $110,100 per year. According to our calculations based on the 2010 data from the American Community Survey (ACS), about 5.8 percent of workers make more than the current cut-off.

Given talk of applying the Social Security tax to all earnings above $250,000 per year, we also calculated that about 1.4 percent of workers would be affected if such a measure were enacted.

The report includes several useful tables with earnings breakdowns by state and gender. But, since I was only the junior author on the project, I wasn’t able to block the inclusion of this pie chart in the final report:

Share of workers earning at least 100,000 / 250,000

Source: CEPR, 2012.

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