Social Security Tax

The Social Security tax, like the Medicare tax, is withheld from an employee's paycheck under the Federal Insurance contributions Act (FICA).  It is combined with the mandated employer contribution and paid directly to the U.S. government.  The tax is assessed at a fixed rate on all income up to an upper limit. 

The Social Security tax is a presumed payment to fund the retirement of an employee.  Since Congress has long since spent the money in the Social Security fund, present workers paying the tax are directly funding the retirement payments of current retirees.  In the near future the number of retirees drawing Social Security payments will far outnumber employees supporting them and unless Congress starts making provisions to solve this problem soon the program will collapse.  There is not much time to act as the deficit in the Social Security system will be in the trillions of dollars.

President Bush attempted to begin solving the problems facing Social Security by opening up some of the mandated payment to personal investment accounts.  Unfortunately, the Democrat controlled Congress would have none of it and the looming system deficit is still fast approaching with no solution in sight.  It is already beyond the ability of the Social Security tax to save the system regardless of the amount of the tax.

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Social Security Tax News
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• 30 Options For Reforming Social Security And How Much Theyaposll Save Washi...
Magharebia30 options for reforming Social Security and how much they39ll saveWashington Post blogMeans testing Social Security would create a huge implicit marginal tax on saving for the upper middle class. When deciding whether or not to save an extra Social Security not a cause of, and not a solution to, national debtAtlanta Journal Constitution blogAdvice to President Obama39s Deficit Commission: Tax Social Security PaymentsOUPblog blog6 Ways to Catch Up on Retirement SavingsU.S. News World Report blogFederalNewsRadio.com magharebia.com SooToday.comall 32 news articles raquo
• Voice Of The People: Where Is Fair NJ TODAY
Voice of the People: Where Is FairNJ TODAYRepublicans voted to cut Medicare benefits and sought to privatize Social Security, which would have gambled away America39s retirement fund on Wall Street Wonkbook: Obama proposes 50B for infrastructure, 100B for RampD tax credit Washington Post blogGoing Against Former Boss, Obama39s Former Budget Director Says Bush Tax Cuts ABC News blogIs GOP Fair in Calling Stimulus quotFailedquotCBS NewsFiredoglake blog Jackson Clarion Ledgerall 4,822 news articles raquo
• Payroll Tax Doubles In This Republican Dream Plan: Amity Shlaes BusinessWeek
Payroll Tax Doubles in This Republican Dream Plan: Amity ShlaesBusinessWeekThat39s right, double the payroll tax for Social Security to 24.8 percent from its current 12.4 percent. Right now both parties misrepresent Social Security and more raquo
• AposJournal Editorial Reportapos: Dems Scramble For A Tax Cut Plan Social Sec...
39Journal Editorial Report39: Dems Scramble for a Tax Cut Plan Social Security FOXNewsRemember, seniors still think there39s a trust fund for Social Security. You say there39s going to be a payroll tax cut, that could be easily demagogued by
• Get Business Alerts Huffington Post Blog
Huffington Post blogGet Business AlertsHuffington Post blogAnd a continuation of tax policies that favor Wall Street and the wealthy. As a bonus track, we even get the same old Social Security shuffle. and more raquo