There already is & has been a cut-off thresh hold for deducting Soc Sec. At present, it is around $110,000 gross income.
The limit on earning which trigger contributions to Medicare were lifted years ago. IF you make $100,000,000 a year you will pay into Medicare & your employer will have to match this.
I don’t know exactly how sports teams handle this. Since each player has his own contract, I don’t know if they are considered employees or indipendant contractors. (1099).
I’m well aware of the cutoff. I was replying to Norseman’s post where he seems to imply that this cutoff is a form of means testing in and of itself. I disagree—Social Security is supposed to be a pension that is dependent on what’s been paid in by each pensioner, but it is capped. I don’t see a problem with capping the benefits if the payments are also capped.
The means testing that has been proposed by various parties would eliminate or dramatically reduce your Social Security payment depending on how well off you are in your retirement, presumably based on income. My comment is that our progressive tax system does that to you anyway by taking an increasing percentage of the pension back.
As to the unlimited 2.5% self-employment Medicare tax, that is a total screw-job. Not only do you pay far more than your share of the cost, when you retire, they whack you a few hundred dollars extra a month for your coverage if you have a high income, regardless of how much you’ve paid in over the years past.