The Campaign Spot

Edwards’s Social Security Tax Limit Figure Two Years Out of Date

Hillary Spot reader Tom brings this to my attention. Yesterday Edwards said:

MR. RUSSERT: But what about for Americans, say, who are 50 and younger, the next generation? Could you establish something different for them?

 

SEN. EDWARDS: I think there’re multiple ways to do it. You know, we could do—one example is, we now have a cap on, on, on the taxes that’re paid. About—it’s about $90,000. And does that cap make sense? Maybe not. Do we need to be—do we need, perhaps to—if we’re going to raise the cap or eliminate the cap, do we need to have a bubble for middle income families that earn over $90,000 a year? Maybe. I think there’re—I think there’re tools available to us, and we certainly do need to deal with it.

To his credit, Edwards said “about” $90,000, but that was the amount in 2005. Last year the cap was set at $94,200; in 2007, the amount is $97,500. According to the Social Security Administration, this limit increases each year with increases in the national average wage index.

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