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January 28, 2008
Guess Who Doesn't Pay Social Security Taxes? (Hint: His First Name is George)
Falls Church, VA — The President, Members of Congress, and Supreme Court justices do not pay Social Security taxes, giving them an extra $6,045 a year in take-home pay, Tax Notes reports in this week's issue.

Under the Social Security system, working Americans are subject to a 6.2 percent payroll tax on their first $97,500 of wages.  Their employers also pay a 6.2 percent payroll tax on those wages, making the overall tax 12.4 percent.  Those taxes support the Old Age, Survivors, and Disability Insurance portion of Social Security — in essence, the checks that are distributed to tens of millions of Americans each month.

But, Tax Notes reports, our nation's leaders are not subject to that 6.2 percent payroll tax on any of their wages.

"Hey guys," contributing editor Martin A. Sullivan asks in his article, "how about pitching in on the Social Security crisis?"

To interview Martin Sullivan on this issue, e-mail Wendy Lewis or call 703 533-4404.

About Tax Analysts

Tax Analysts is an influential provider of tax news and analysis for the global community. Over 150,000 tax professionals in law and accounting firms, corporations, and government agencies rely on Tax Analysts' federal, state, and international content daily. Key products include Tax Notes, Tax Notes Today, State Tax Notes, State Tax Today, Tax Notes International, and Worldwide Tax Daily. Founded in 1970 as a nonprofit organization, Tax Analysts has the industry's largest tax-dedicated correspondent staff, with more than 250 domestic and international correspondents. For more information, visit our home page.