Figure D
Rising earnings inequality causes a growing share of earnings to exceed the tax cap: Cumulative growth in average earnings of the top 5% and the Social Security tax cap, 1979–2021
| Average earnings of the top 5% | Benefit cap | |
|---|---|---|
| 1979 | 0.0% | 0.0% |
| 1980 | 0.9% | 1.7% |
| 1981 | 1.7% | 6.6% |
| 1982 | 6.1% | 9.6% |
| 1983 | 9.2% | 15.9% |
| 1984 | 14.0% | 17.8% |
| 1985 | 16.1% | 19.3% |
| 1986 | 22.0% | 24.3% |
| 1987 | 30.5% | 25.4% |
| 1988 | 37.5% | 24.3% |
| 1989 | 37.1% | 27.0% |
| 1990 | 36.6% | 29.4% |
| 1991 | 32.1% | 30.0% |
| 1992 | 40.7% | 31.8% |
| 1993 | 39.9% | 33.4% |
| 1994 | 41.2% | 37.5% |
| 1995 | 47.5% | 35.6% |
| 1996 | 51.4% | 35.3% |
| 1997 | 60.6% | 38.1% |
| 1998 | 71.3% | 42.5% |
| 1999 | 81.1% | 48.1% |
| 2000 | 90.4% | 50.4% |
| 2001 | 81.5% | 54.3% |
| 2002 | 74.9% | 60.4% |
| 2003 | 76.7% | 60.7% |
| 2004 | 84.6% | 58.1% |
| 2005 | 89.1% | 56.6% |
| 2006 | 95.6% | 58.7% |
| 2007 | 102.6% | 59.8% |
| 2008 | 94.1% | 61.0% |
| 2009 | 85.4% | 69.1% |
| 2010 | 93.0% | 66.4% |
| 2011 | 94.7% | 61.3% |
| 2012 | 101.7% | 62.8% |
| 2013 | 97.8% | 65.7% |
| 2014 | 104.6% | 67.7% |
| 2015 | 110.8% | 69.5% |
| 2016 | 108.0% | 67.4% |
| 2017 | 112.5% | 75.9% |
| 2018 | 113.9% | 73.3% |
| 2019 | 117.0% | 76.2% |
| 2020 | 126.8% | 80.3% |
| 2021 | 136.3% | 78.6% |
Note: For detailed methodology, see Gould and Kandra (2022).
Source: Annual Statistical Supplement 2022, Table 4.B1, Social Security Administration and Social Security Administration wage statistics.
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