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"they keep jacking it up year after year."

Pretty much. It's based on the national average wage index. But the formula is the same as the one for indexing SS initial benefits. Details here:

Tele, I agree with you that payroll taxes hit upper-middle wage earners (roughly, 60th to 80th percentile) hard. That's not merely an opinion, it's a fact. And the reason for that is because the threshold needs to be adjusted UPWARDS.

When income earned on working is penalized to provide benefits to folks whose income comes from owning stuff (cap. gains, dividends, "carried interest," etc.), it results in exactly the squeeze to which you refer.

I am finally at the stage in my life at which most of my income stream will come from owning stuff rather than working. But that doesn't suddenly make it fair that folks like me (let alone Romney) pay taxes at a lower effective rate than bus drivers do.
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