Actually my read on this is that they did go after the cap for two months. If you make more than two months worth of the cap, then THAT money will be taxed at 2%, anything under the cap will be taxed at 4.2%. Doing it for only two months confuses the issue which is probably why they did it. If it becomes this way for the year, then look what happens. If you do the math, someone making 110,000/year payed 6.2% before (paying 6820 in social security tax). Now they pay 4.2% or $4620 ....an $1800 decrease. If you make 110,001, then the first $110,000 is payed at 4.2% and the last dollar is payed at 2%. So you pay $4620.02.

If you make $200,000 a year (the magical number for being "rich" according to the Marxist in Chief) then you will pay 4.2% on everything under $110,000 and 2% on everything over.....so the extra $90,000 above the "cap" is taxed at 2% for an increase of .....wait on it....wait on it....$1800.

So if you make exactly $200.000 you will pay 6.2%......which is an increase of 2% over the "Holiday".....Anything over that is a huge increase as that income not previously available to tax is now taxed at 2%. Which is probably why the psuedo limit (more a dividing line) is now at $110,000. It has been going up every year. This is just a device so Obama can keep his promise of not raising taxes on those making under $200,000.

Like I said, it is no longer a limit, just a dividing line. If this becomes permanent, If you make $500,000 a year, you will pay $4620 on the first $110,000 and $7800 on the next $390,000 for a grand total of $12420 in social security tax which is almost a whopping 87% net increase in social security taxes paid from before the holiday when you were "Maxed out at $6820".

They went after the limit with this....they did it for two months to confuse the issue because the cowards in the Senate and the House did not want to admit what they did. They went for a temporary fix.....now the easiest thing to do is extend it indefinitely. As a side note, the dividing line for the 99th percentile of earned income for a single earner in the US is right at about the $200,000 mark. This is exactly why you are seeing all this emphasis about the 99% these days.

This does nothing except fuel class warfare as if someone making over $200,000 is the top 1%, then there is no way the additional taxes will help pay for any "Shortfall"