It's from the Social Security checks you are never going to see. Now all of you racist Freepers, pay your 7.5% and shutup. :-(
From the web.....
Social Security’s Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. The same annual limit also applies when those earnings are used in a benefit computation. This limit generally increases with increases in the national average wage index. We call this annual limit the contribution and benefit base, or taxable maximum. For earnings in 2011, this base is $106,800.
For Medicare’s Hospital Insurance (HI) program, the taxable maximum was the same as that for the OASDI program for 1966-1990. Separate HI taxable maximums of $125,000, $130,200, and $135,000 were applicable in 1991-93, respectively. After 1993, there has been no limitation on HI-taxable earnings.
An employee who pays contributions on earnings in excess of the contribution and benefit base (because of employment with two or more employers) is eligible for a refund of the excess employee contributions.
For wages paid in 2011, employees pay 4.2 percent and employers pay 6.2 percent in OASDI taxes. Thus, an individual with wages equal to or larger than $106,800 would contribute $4,485.60 to the OASDI program in 2011, and his or her employer would contribute $6,621.60. Self-employed workers pay 10.4 percent in OASDI taxes on income in 2011. By law, the OASI and DI trust funds will receive taxes as if the tax rates were 6.2 percent for employees and employers, each, and 12.4 percent for self-employed workers. The reduction in 2011 tax revenue due to lower tax rates will be made up by transfers from the general fund of the Treasury to the trust funds. See tax rates for a table of the OASDI and HI tax rates on wages and self-employment income.
I forgot....
2011 FICA Tax and Social Security Limits
* FICA Tax Rate = 7.65% (see note below)
* Social Security Limit = $106,800
* Maximum Social Security Contribution = $6,621.60 (employer) / $4485.60 (employee)