The calculator below can show when various wage incomes, if spread evenly throughout the year, reach Social Security tax freedom day — the last day when it’s subject to any Social Security taxes. It’s important to note that this only applies wage income, and not other types of income (e.g. investment income).
Besides $1,000,000, here are some salaries that might be interesting to enter into the calculator:
$28,417: This is the 50th percentile of 2014 income in the U.S., and assumes that this income is entirely wage income.
$200,000: This is the upper limit of what President Obama defines as “middle class,” and assumes that this income is entirely wage income.
$12,115,769: This is the wage income in 2014 of David Cote, CEO of Honeywell, a large American multinational conglomerate. Cote has overseen a large increase in Honeywell’s political expenditures during his time as CEO. He helped found the organization Fix the Debt, which lobbies for cutting Social Security and lowering the taxes of companies like Honeywell.