The 401k limit increases $1k and the Social Security tax limit increases $5k to $147,000.
In 2000 the Social Security tax limit was $76,200 so that is a 93% increase. Inflation increased only 59% in that time.
In 2000 the Social Security tax limit was $76,200 so that is a 93% increase. Inflation increased only 59% in that time.
Especially on the coasts people making 150k plus is not too unusual.
In theory, that decreases the Social Security we have to pay out, but in reality, that would mean letting those people die when they get old, so we'll pay for it one way or another.
Plus, you know, people not having kids. Social Security isn't pre-funded, so it kind of depends on the labor force growing indefinitely. That was a terrible idea, but I can't see any way to fix it now.