zerohedge.com / by Tyler Durden / Jan 9, 2017 5:22 PM
Many Americans looking forward to Trump’s promise of tax cuts from his administration are going to get a rude awakening when they get their first paychecks of 2017. While Trump has vowed to cut marginal income tax rates for individuals and corporations, the social security tax levied on the nation’s top earners is set to soar in 2017 for top earners.
For the 2015 and 2016 tax years, only the first $118,500 of earnings was subject to the 6.2% social security payroll tax. That said, that “taxable minimum” is set to soar to $127,200 for the 2017 tax year, a 7.3% increase that will cost America’s top earners an additional $539 this year.
As Bloomberg points out, the steep increase in 2017 is the result of the federal government making up for lost time as the “taxable minimum” is not allowed to increase in tax years during which benefit recipients don’t get a cost-of-living increase.
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