The Social Security Act of 1935 set the taxable maximum at $3,000. Income earned above this amount was not subject to Social Security taxes. This threshold was a fixed amount that was not indexed for inflation or wage levels.[24]
* Between 1950 and 1971, various Congresses and Presidents passed six laws increasing the taxable maximum by a total of 200%.[25]
* In 1972 and 1973, the 92nd and 93rd Congresses and Republican President Richard Nixon passed laws: · increasing the taxable maximum for 1973 and 1974 by a total of 47%. · indexing the taxable maximum for 1975 and annually thereafter based upon changes in average wage levels.[26]
The Social Security Act of 1935 set the taxable maximum at $3,000. Income earned above this amount was not subject to Social Security taxes. This threshold was a fixed amount that was not indexed for inflation or wage levels.[24]
ReplyDelete* Between 1950 and 1971, various Congresses and Presidents passed six laws increasing the taxable maximum by a total of 200%.[25]
* In 1972 and 1973, the 92nd and 93rd Congresses and Republican President Richard Nixon passed laws:
· increasing the taxable maximum for 1973 and 1974 by a total of 47%.
· indexing the taxable maximum for 1975 and annually thereafter based upon changes in average wage levels.[26]