Originally posted by ra
I wish more people knew how much they really pay into Social Security.
ra
They tell you up front how much they're taking; most people just don't want to know.
Your Social Security Tax Dollars "Almost all American workers pay Social Security taxes. If you take a look at your pay stub--the part that shows how much is taken out for various taxes and benefits each pay period--you'll see deductions for Social Security and Medicare. On some pay stubs it's called FICA, which stands for "Federal Insurance Contributions Act," the law that authorized payroll deductions for Social Security.
The tax rate of 7.65 percent covers both Social Security and Medicare.
The Social Security part of the tax is 6.20 percent of gross wages, up to $80,400 in the year 2001. The Medicare tax is 1.45 percent of all earnings. Employers match a worker's Social Security tax payment. Self-employed people pay Social Security taxes equal to the combined employee/employer tax, although half of their tax is deductible as a business cost.
So we're looking at 7.65% of 80,400 or $6150 a year from the Employeee AND, of course, another 7.65% of 80,400 or $6150 a year from the Employer.
$12,300. This year. Until they raise the tax rates.
It may be a Ponzi scheme but if so it's a Ponzi with roots in the basic "redistribution of wealth" gameplan you see so often.