From Wikipedia:
The
Federal Insurance Contributions Act (FICA) (codified in the
Internal Revenue Code) imposes a Social Security withholding tax equal to 6.20% of the gross wage amount,
up to but not exceeding the
Social Security Wage Base ($97,500 for 2007; $102,000 for 2008; and $106,800 for 2009, 2010, and 2011). The same 6.20% tax is imposed on employers. For 2011 and 2012, the employee's contribution was reduced to 4.2%, while the employer's portion remained at 6.2%.[SUP]
[59][/SUP][SUP]
[60][/SUP] In 2012, the wage base increases to $110,100.[SUP]
[15][/SUP] For each calendar year for which the worker is assessed the FICA contribution, the SSA credits those wages as that year's covered wages. The income cutoff is adjusted yearly for inflation and other factors.
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If the input is capped, then so is the output. It's unfortunate, but that's how the scheme works (i.e.
defined benefits).
There is a way that California
could work around this by using a
Complimentary Currency system akin to the WIR in Switzerland, which would allow the State of California to issue supplementary income as needed, but I wouldn't hold my breath waiting for them to do that (although, they came close to it post-GFC when they issued "vouchers" in lieu of payment to state employees IIRC).
It's too controversial, especially when so much of what the rest of the world considers
public services is treated as private industry in the US.