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A recent report by the Center for Economic and Policy Research found that only the top 1.5percentt (1 in 67) and 0.7percentt (1 in 140) of Americans would be affected if the Social Security tax were applied to earnings over $250,000 and $400,000, respectively.
Census Bureau data shows that only about 5percentt (1 in 18) of workers would pay more if the cap were scrapped, and only the top 1.4percentt (one in 71 workers) would be affected if the tax were applied to earnings over $250,000.
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The marginal rate – which applies to earnings above £150,000 – was only ever to be temporary.
The proposed 25percentt capital gains tax would also apply to earnings on interest from securities and savings accounts.
Earnings above the $75,000 threshold will attract the same concessional rate of 15% that applies to earnings in the accumulation phase.
That rate would apply to earnings above $1 million a year — not to "millionaires," those with a net worth at that level.
It's important to remember that "qualifying earnings" does not mean all of an employee's salary, but applies to earnings over a minimum amount (currently £5,824) up to a maximum (currently £42,385).
Unlike the payroll tax for Social Security, which applies to earnings up to an annual ceiling ($106,800 in 2009), the Medicare tax is levied on all of a worker's earnings without limit.
But because the change only applies to earnings taxed in the UK, families with a high earner working abroad may not face any cuts at all.
Options dilute per-share earnings because they increase the divisor applied to net profits to figure per-share earnings.
These credits are applied to any earnings above the £30,000 salary cut-off - so if a qualifying player earns £35,000, only £5,000 would be counted in the club's salary cap calculations.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com