The new 2% recapture tax

One thing you think you know about Social Security, it's a flat tax that applies the same to all earners, up to the wage base. 

Not anymore.

A new recapture tax was attached to the extension of the 2% payroll tax holiday for two months.  Those over the wage base will lose that 2% tax break through a recapture tax.  At double the wage base, the 2% benefit will be gone.  In other words, we just added another bubble to the income tax, well below the $250,000 that "millionaires" earn.

HT: TaxProf Blog.