World’s Richest Man Jeff Bezos could pay $10,148 a year in Social Security Taxes — Market Mad House

The world’s richest man, Amazon CEO Jeff Bezos could pay $10,148 a year in Social Security taxes.

To explain, CNN Money claims Bezos’ base salary is $81,840 a year. Thus, if Bezos only pays Social Security taxes on his base salary, he would pay a 6.2% Social Security tax. Meanwhile, as Bezos’ “employer” Amazon (NASDAQ: AMZN) will match that 6.2% equaling 12.4%, the IRS reports. I calculate that 12.4% of $81,840 is $10,148.

However, Bezos could pay a little more if the IRS taxes him at the maximum rate. Poor Jeff could pay $16,479.60 in Social Security taxes. To explain, the federal government only taxes $132,900 of income for Social Security in 2019, the Social Security Administration (SSA) reports.

How Income Inequality Threatens Social Security

Thus, Bezos pays no Social Security tax on most of his $1.682 million compensation from Amazon and his $159.5 billion fortune. Consequently, the world’s richest man pays almost nothing to maintain America’s Social Security system.

Bezos’ example shows why Social Security could run short of money by 2035. ABC News reports Trump administration officials think revenue short falls could lead to Social…