Why is there a cap on what people can contribute to social security, yet there isn't a limit to what those who contribute are allowed to take out? why do the wealthy people believe they are 'entitled' to the complete benefits of something the pay into at a disproportionate level? Social Security Wage Base - Wikipedia, the free encyclopedia In 2010, the Social Security Wage Base is $106,800 and the Social Security tax rate is 6.20% paid by the employee and 6.20% paid by the employer. A person with $10,000 of gross income will have $620.00 withheld as Social Security tax from his check, with the employer sending an additional $620.00. A person with $110,000 of gross income in 2010 incurs Social Security tax of $6,621.60 (resulting in an effective rate of approximately 6% - the rate is lower because the income is more than the 2010 "wage base", see below), with $6,621.60 paid by the employer. A person earning a million dollars in wages will pay the same $6,621.60 in Social Security tax (resulting in an effective rate of approximately 0.66%), with similar employer matching.