Social Security
...enactment the Administration and Congress
revised it. President Franklin wanted more to be done to revise the
program.
Social Security is a source of financial security for millions of
Americans. The program provides financial benefits for retirees, disabled
persons, and family of survivors of retired, disabled and deceased
workers currently 48 million people have collected benefits this year.
Baby boomers are the largest generation in American history. The 76
million persons born in 1946 through 1964 are making up the boom era.
In 2008 baby boomers will be reaching 62 years in age. The cost of
Social Security will increase much faster than income tax due to the
population of persons 65 and older will grow faster than that of the working
aged population. The baby boom generation and life expectancy
increasing will contribute to an aging population. When Social Security began
life expectancy at age 65 was 12 and one half years. Today that number
has grown to seventeen and one half years, and by 2030 it is expected to
reach 19 years. Beneficiaries will continue to grow while tax rates
remain the same.
Social Security taxes must be paid by public employees, self-employees,
State and local government public employees; the tax is referred to as
F.I.C.A (Federal Insurance Contribution Act). Employers also pay Social
Security tax that matches the employees contribution. The employers
share is a deductible business expense for income tax purposes. There is
an additional tax on workers earnings to pay for Medicare hospital
insurance. Higher income Social Security beneficiaries pay federal income
taxes on their benefit income which also help finance Social Security.
The tax began at two percent, and has been raised more than twenty
times, currently it is at 12.4 percent. The system today is pay-as-you go.
Under...
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