Maximum taxable earnings for SS is $128,400. Everybody who takes advantage of the carried interest loophole draws a regular salary too, and it's much higher than 128K, so no effect.
Not quite, although I guess it is technically a different loophole.
> Another sharp difference involves a tax category called self-employment tax, a substitute for Social Security and Medicare taxes paid by filers who don’t have regular paychecks.
Rauner’s returns show he paid no self-employment tax in 2015 and 2016, years in which he collectively reported nearly $279 million in adjusted gross income. In 2014, Rauner paid just $152 and last year just under $20,000.
The IRS has recently begun cracking down on investors in limited liability corporations such as those in private equity for underreporting income subject to Social Security and Medicare tax.
A 2016 study by the federal agency estimated such underreporting had cost the two financially struggling entitlement programs for retirees $65 billion between 2008 and 2010 alone.
> Another sharp difference involves a tax category called self-employment tax, a substitute for Social Security and Medicare taxes paid by filers who don’t have regular paychecks.
Rauner’s returns show he paid no self-employment tax in 2015 and 2016, years in which he collectively reported nearly $279 million in adjusted gross income. In 2014, Rauner paid just $152 and last year just under $20,000.
The IRS has recently begun cracking down on investors in limited liability corporations such as those in private equity for underreporting income subject to Social Security and Medicare tax.
A 2016 study by the federal agency estimated such underreporting had cost the two financially struggling entitlement programs for retirees $65 billion between 2008 and 2010 alone.
https://www.politifact.com/illinois/article/2018/oct/21/raun...