Maximum SS Taxes Have Increased 4X Since 1970
The chart above is based on Social Security Administration data here for maximum taxable Social Security earnings, and here for the tax rates for Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) and Medicare's Hospital Insurance (HI), and shows the maximum annual taxes payable from 1937 to 2009. The annual tax amounts have been adjusted for inflation using the CPI data available here, and are shown above in 2009 dollars for the total annual contributions that come from both employees (50% of the total) and employers (50% of total).
Note that since 1970, the maximum taxes paid annually for Social Security and Medicare has more than quadrupled from $4,000 to more than $16,000.
Originally posted at Carpe Diem.