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
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.