Social Security: Fair or Foul
Big news in the baseball world today – the New York Mets are poised to sign Johan Santana arguably the best pitcher in baseball. Seems the deal could be for something like $20-$25 million/year. Good for him.
Here’s what bugs me about it. It’s not the amount of money he’ll be making. It’s that the way our tax infrastructure works, he’s going to be paying exactly the same amount of Social Security taxes that I pay. And guess what – I make a LOT less than $20 million/year. Not only that, if the Senate changes the economic stimulus package to give the administration what it originally wanted, the pitcher and I will get the same tax rebate. I’m guessing he doesn’t really need that check that badly. (In the House-passed version, neither of us get one.)
Consider the stats: In 2005, the Pittsburgh Pirates had the lowest average salary for Major League Baseball -- $963,674. In 2005, the American Federation of Teachers reported that the average teacher salary was $47,602. The maximum earnings taxable for Social Security in 2005 was $90,000.
So…in 2005, the average teacher paid Social Security tax on 100% of his/her salary. The average Pittsburgh Pirate player paid Social Security tax on less than 10% of his.
Fair or foul?
