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VOA: special.2010.08.01
High-earning self-employed individuals have had an extra incentive to play the S game since 1993, when Congress lifted the cap on the amountof earnings subject to the 2.9% (combined employer and employee) Medicare tax.
The plan is often described as a cap on itemized deductions but in fact aims at a number of other politically popular tax breaks as well, including several exclusions that reduce the amountof income subject to tax.