Payroll Tax & Social Security: troubling numbers...
Wednesday, August 31, 2011 at 2:04PM Payroll tax: in numbers
Social Security is paid for in the payroll tax. The payroll tax is paid as follows:
- 6.2% of wages Social Security (employer’s share)
- 4.2% of wages Social Security (employee’s share, 2010: 6.2%)
- 1.45% of wages Medicare (employer’s share)
- 1.45% of wages Medicare (employee’s share)
Total Tax on wages: 13.3% in (2011), 15.3% in 2010.
Social Security: in numbers
Social Security’s first recipient: paid in $44 in social security taxes received back $20,993.00.
Number of workers supporting each retiree in 1950: 16
Number of workers supporting each retiree today: 3 (just over), only 1.75 full time private sector workers.
Number of workers supporting each retiree by 2030: 2
Number of times social security taxes have been raised: 40
Initial Social Security tax: 2% for a maximum tax of $60.00 per year.
2010’s Social Security tax: 12.4% for a maximum tax of $13,234.
Unfunded future liabilities: $20 Trillion
Much of this data comes from an article by Michael Tanner.
No matter how you slice it, American wage earners have been paying an increasing premium to continue the Social Security program and will necessarily pay a further increased premium to support the program in the future. Fundamental changes in the system are necessary right now to meet future unfunded liabilities and obligations.