In an effort to punish the rich the Democrats have fiddled with the FICA tax formula in the recent calculations for the two month payroll tax cut extension. The Democrats plan calls for the reduced 4.2% FICA tax rate to be applied for two months and only on the first $18,350 of wages. Here's why. In 2012 FICA taxes apply on the first $110,000 of wages earned. After someone earns $110,000, no FICA is withheld from employees pay. An annual wage of $110,000 is $9,167 per month, or about $18,350 in two months. Democrats want to make sure that if the payroll tax cut only lasts for two months the wealthy will not get "more than their fair share" of a tax cut. If someone makes, say, $240,000 a year that is $20,000 a month. This person would reach their annual $110,000 taxation limit much faster than lower paid workers. In two months this worker would get FICA tax cuts on $40,000. Suppose the FICA tax cut only lasts for the proposed two months? Then this high earner would reach his $110,000 limit sometime in June AND would have received tax cuts on $40,000. Democrats can't have that, so they cap the amount of eligible wages for the tax cut at $18,350. Looks like class warfare to me. Do they really want to stimulate the economy, or punish the wealthy?