| You should be able to find several indispensable | | | | proposed solutions to the problem, and all of |
| facts about social security tax in the following | | | | them, with just a few exceptions point to higher |
| paragraphs. If there's at least one fact you didn't | | | | taxation of the wage earners income. It is |
| know before, imagine the difference it might | | | | interesting to note here, that when income tax |
| make. | | | | and social security, Medicare, and the many other |
| Every week that you work, there are taxes | | | | "beneficial" programs the government has |
| deducted from your gross payroll that are | | | | implemented to aid the general public, we have |
| distributed to the Social Security Administration, | | | | lost in the area of disposable income. In 1913, |
| along with other programs administered by the | | | | when the income tax program was begun, less |
| government. Of all the taxes we pay, social | | | | than 1% of the average individual's income was |
| security is one of the most beneficial, one of the | | | | taxed. Today, we pay roughly 10% of our income |
| most watched. Why do we pay social security | | | | in tax. That's a staggering rate of growth, when |
| tax, and what does it potentially mean for all | | | | you consider that our income levels have also |
| Americans? The following article discusses the | | | | tremendously increased too. The following |
| social security tax regulations and what we | | | | paragraphs briefly outline some of the more |
| benefit from the mandated deduction. | | | | popular proposals for dealing with the projected |
| Social security tax is deducted from our payroll | | | | shortfall, and the effect it should have on "Joe |
| each week in order to cover a portion of our | | | | Citizen". |
| retirement income when we reach age 65, but | | | | The information about social security tax |
| also a survivor benefit, should we become | | | | presented here will do one of two things: either it |
| disabled during the course of our working life, or | | | | will reinforce what you know about social security |
| die as a result of work-in which case the surviving | | | | tax or it will teach you something new. Both are |
| spouse and children would receive a monthly | | | | good outcomes. |
| income supplement to help them with their daily | | | | Increases in FICA taxes; of course, this is a hard |
| expenses. | | | | sell in the current climate, but by the time we |
| Each and every day, we are bombarded with | | | | reach 2017, it might look like a better solution |
| statements that want to make us aware of the | | | | than any of the others. |
| dire straits our social security system and the | | | | Increases in normal retirement age (NRA) have |
| gloom and doom picture we face in just a few | | | | already begun, and it looks like it is going to be an |
| years. This article examines the information | | | | ongoing process. As our life expectancy increases, |
| available about our social security system, and | | | | the ability of social security to accommodate |
| asks the questions about its fate and ours. | | | | greater payouts, and a reduction in the working |
| The social security tax we know and pay today | | | | population continues, extending the NRA on past |
| has become a greater chunk of our income with | | | | the age of 70 is a real possibility. |
| the passing years. And, as if this is not enough, it | | | | Privatization of social security; although on the |
| is the poorest of this nation that pay the most, | | | | surface this looks like a promising solution, it would |
| since there is a cap on the income levels that are | | | | take a special kind of citizen to intelligently, |
| subject to the social security tax. Currently, any | | | | objectively, and rationally invest their 4% |
| income above $90,000 isn't subject to social | | | | allocation wisely, and truly reap the benefit that |
| security tax. This presents a problem for the | | | | social security has previously provided. |
| nations poor and the federal government's level | | | | Selling bonds or printing money. The US Treasury |
| of social security tax received. As more and | | | | does have the option to intervene and raise the |
| more of our population begin to age, there are | | | | money to accommodate the excess demand, but |
| fewer and fewer based employees to sustain the | | | | you increase the probability of runaway inflation |
| fueled growth and maintenance of the social | | | | when you begin to pump excess money into the |
| security system. Add to this the fact that | | | | economy. |
| individuals with wage earnings beyond $90,000 are | | | | What is the ultimate solution for this problem? No |
| growing faster than the wage base for | | | | one really knows, simply because no one can |
| employees who remain below the $90,000 level, | | | | accurately predict long-range models. 20, 30, of |
| and you have the makings of a disaster. The | | | | even 40 years into the future, accurate |
| latest predictions place the collision date | | | | predictions are extremely hard to come by. |
| somewhere around 2017. That's not an extremely | | | | That's how things stand right now. Keep in mind |
| distant future, and it certainly will be a problem for | | | | that any subject can change over time, so be |
| the 45-50 year old wage earner. | | | | sure you keep up with the latest social security |
| So what has been proposed to deal with this | | | | tax news. |
| growing problem? There are currently several | | | | |