{"id":1492,"date":"2025-09-16T13:00:00","date_gmt":"2025-09-16T13:00:00","guid":{"rendered":"https:\/\/www.artsjournal.com\/scenechange\/?p=1492"},"modified":"2025-08-25T05:06:01","modified_gmt":"2025-08-25T05:06:01","slug":"born-in-the-dsa-remove-the-social-security-cap","status":"publish","type":"post","link":"https:\/\/www.artsjournal.com\/scenechange\/2025\/09\/16\/born-in-the-dsa-remove-the-social-security-cap\/","title":{"rendered":"Born in the DSA*: Remove the Social Security Cap"},"content":{"rendered":"\n

Did you make more than $176,100 this year? Did you tell your staff that you\u2019re paying a lower Social Security tax than they are?<\/strong><\/p>\n\n\n\n

\"\"<\/a>
With apologies to Bruce Springsteen. (Image by the author, licensed under CC BY-NC 4.0<\/a>)<\/figcaption><\/figure>\n\n\n\n

I remember the moment clearly.<\/strong> In Alabama, I found myself in a quandary on a particular payday in late November. All of a sudden, I was receiving a higher take-home salary, even though I had not received a pay bump. I went to our finance office, comprised of incredibly friendly, warm, and highly-skilled folks. There, the payroll person let me know that I had reached the Social Security cap and that\u2019s why they weren\u2019t taking it out of my pay any more. Clueless me \u2014 especially as the son of a CPA \u2014 I had never heard of the Social Security cap.<\/p>\n\n\n\n

\u201cOh,\u201d she said, \u201cthat\u2019s probably because it never came up before.\u201d<\/p>\n\n\n\n

\u201cSo, what do I do?\u201d I asked, looking at the paystub. \u201cThis doesn\u2019t seem right.\u201d<\/p>\n\n\n\n

\n\n\n\n
\n

*DSA stands for the Divided States of America (aka \u201cOne Nation, Divisible\u201d). Periodically, I\u2019ll be writing more specific takes on issues that are clearly wrong for this country, using the arts as context. If there are issues you\u2019d like to take up (or that you\u2019d like me to take up), let me know.<\/a><\/mark><\/em><\/strong><\/p>\n<\/blockquote>\n\n\n\n

\n\n\n\n

No one should pay less in Social Security taxes (by percentage) than anyone else, not even me<\/strong>. The whole point of the program is that everyone pays in the same and everyone benefits the same. And always remember, even Ayn Rand took Social Security (and Medicare, for that matter) benefits<\/a>.<\/p>\n\n\n\n

Today, the Social Security cap is $176,100. For every dollar earned up to that point by any employee, there is a Social Security tax of 6.2% paid by the employee and 6.2% paid by the employer<\/a> (Self-employed people pay the whole tax of 12.4%.). For every dollar above the cap, however, the employee pays no tax, and there is no matching tax paid by the employer.<\/p>\n\n\n\n

Why is there a cap? <\/strong>It\u2019s been there since the beginning, in 1937, although until 1950, the cap number was $3,000 per year (the equivalent to a little over $40,000 today). The cap and low payments were part of a compromise made with conservative republican dickheads who may have decried Darwin as being anti-Christian, but held fast to using his \u201csurvival of the fittest\u201d notion as a sociological cudgel intended to kill the poor, which is exactly what they must believe Jesus would have done, I guess.<\/p>\n\n\n\n

Today, about 96% of wage-earning Americans are unaffected by the cap.<\/p>\n\n\n\n

Which means, of course, that 4% of the 200 million American taxpayers are, or 8 million people.<\/a> The cap is preventing upwards of $3.2 TRILLION<\/a> from naturally becoming a part of the Social Security funds over a 10-year period. Those billions go right back to the highest wage-earners, who presumably buy their third island with it.<\/p>\n\n\n\n

In today\u2019s behemoth arts organizations, there are a number of leaders earning well more than that cap. I could take the time to point them out, because their 990s are public and available either via the IRS\u2019s charity website<\/a>, through Guidestar<\/a>, or by requesting the data yourself (which, as we\u2019ve related in September 2023, they are required to give you<\/a>). And while those earning $400,000, $500,000, $600,000 or more might be embarrassed to reveal that information, the federal law states that no one may be prohibited from discussing salaries with anyone else within a company (because that practice only serves the employer, not the employee<\/a>), even if they hold work agreements that say otherwise. (Just because something is in a contract doesn\u2019t make it suddenly legal. Illegal stipulations are void. You didn\u2019t know that?)<\/p>\n\n\n\n

\n\n\n\n

In fact, were you to look these organizations up (start with the ones with the biggest budgets, of course) and you were to list them in the comments beneath this article, that would be completely legal <\/strong>and a public service to the entire sector. If you need help with that, let me know (alan@501c3.guru<\/a>).<\/mark><\/em><\/p>\n\n\n\n

\n\n\n\n

If the cap were removed and everyone paid the same rate of Social Security \u2014 everyone \u2014 suddenly a whole bunch of money would flood into the Social Security system, closing the current gap by 53%.<\/p>\n\n\n\n

The Heritage Foundation<\/a> sees it differently (wow. what a surprise.). Those dickheads believe that if the cap were removed, the economy would be harmed.<\/p>\n\n\n\n

They call it a tax \u201cincrease\u201d rather than what it is, tax equity<\/em>. They also say it would \u201creduce the family budgets of 23 million people\u201d by over $9,000 in the first year alone. These arrogant douches don\u2019t think anyone else can do the math. Any family with a $9,000 reduction in the first year (2025) would be earning $321,261.29 in wages. If you\u2019re making $321,261.29 or more, you can afford the $9,000 haircut when it\u2019s for the good of the country.<\/p>\n\n\n\n

Social Security is highly popular. Over 90% of Americans support it and 94% accept it when they become eligible. Little Donny Dingdong and his cronies knows that abolishing it is an unpopular idea. So, he simply says that he\u2019s protecting it; doing so, of course, while at the same time he\u2019s holding its metaphorical head underwater.<\/p>\n\n\n\n

How can I make this better? <\/strong>If you earn more than the cap, don\u2019t stop donating to the fund through your payroll taxes and have the company match it, just like everyone else. Simple. Fair.<\/p>\n\n\n\n

Know that most people do not know that there is a cap and that high-earners don\u2019t pay as much into Social Security as a minimum wage earner. Rail against it with your company. Raise awareness and try to enact legislation in your state, or better, in your federal leaders.<\/p>\n\n\n\n

Make the cult members in the current administration say out loud that they believe poor people should pay higher rates into Social Security than rich people. Make them say it.<\/strong><\/p>\n\n\n\n

It would not be lobbying to let people know where candidates stand on this particular cause, as long as you don\u2019t add your endorsement. Ask the question at your next town hall.<\/p>\n\n\n\n

For those newly-wealthy arts leaders who are part of the cadre of people who have traditionally been discriminated against in terms of pay equity (women, non-Whites, etc.), take a moment and do the right thing. Say out loud that this is wrong. It\u2019s the kind of thing that makes it possible for your legacy to include the fact that while you may have broken through a glass ceiling, you didn\u2019t stop and tape it up behind you.<\/p>\n\n\n\n

\n\n\n\n
\"Scene<\/a>
If you want your nonprofit arts organization to thrive, just pick up this inexpensive trilogy. If not, I can let you know how to throw “Going Out Of Business” sales.<\/figcaption><\/figure>\n\n\n\n
\n\n\n\n
\"\"<\/a>
I love that you read this column all the way to the end. Could you find it within you to support my caffeine habit, either by clicking the picture of the cup or better, getting together if you’re anywhere near Seattle?<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

Did you make more than $176,100 this year? Did you tell your staff that you\u2019re paying a lower Social Security tax than they are?<\/p>\n","protected":false},"author":2,"featured_media":1493,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21,20,100,32,24,19,18,17,99],"tags":[55,10,155],"class_list":{"0":"post-1492","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-arts-and-culture","8":"category-board-of-directors","9":"category-book-recommendation","10":"category-charity","11":"category-freedom-of-speech","12":"category-leadership","13":"category-nonprofit","14":"category-nonprofit-arts-organizations","15":"category-scene-change","16":"tag-backlash","17":"tag-impact","18":"tag-social-security","19":"entry"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.artsjournal.com\/scenechange\/wp-content\/uploads\/2025\/08\/Born-in-the-DSA-with-stars.jpg?fit=900%2C724&ssl=1","jetpack-related-posts":[{"id":1591,"url":"https:\/\/www.artsjournal.com\/scenechange\/2025\/11\/25\/the-2025-final-never-to-be-repeated-carol-for-nonprofit-arts-organizations\/","url_meta":{"origin":1492,"position":0},"title":"The 2025, Final, Never-To-Be-Repeated, Carol for Nonprofit Arts Organizations","author":"Alan Harrison","date":"November 25, 2025","format":false,"excerpt":"Every year about this time, another carol and generally, you don't read it. 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