Social Security Report

Why Do We Fund Social Security Differently From Other Government Programs?

Since its inception during the Great Depression, Social Security has been financed primarily by a dedicated tax on labor earnings.  Today, workers and their employers together pay a 12.4 percent tax on the first $117,000 of labor earnings.  This revenue – along with a relatively small amount of revenue from the income taxation of Social Security benefits – flows into the Social Security trust funds.  From these same trust funds, benefits are paid to retired and disabled workers, their spouses, survivors and beneficiaries….Read More

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