what group of people benefit from Social security? what groups pay the cost of social security?

Answer 1

Created in 1935, Social Security has helped to protect millions of workers from poverty in their senior years. The costs in the long term without adjustments in benefits is a 27 trillion dollars tax burden on future taxpayer the reasons is partially this; There is no money in Social Security's Trust Fund. For years, Social Security has taken in more money than it has paid out; but instead of saving these surpluses, the government spends them and writes the Trust Fund an IOU, a special-issue government bond. The democrats probably will be forced to partial privatization of social security, and raising taxes will not create the revenue to offset the IOU. The cost social security taxes on gone up over the years here are some example historically.

1937 - The Federal Insurance Contribution Act (FICA) required workers to pay taxes to support the Social Security system. Payroll taxes were 2%.

1956 - Disability Insurance was created, and expanded over the following years. Early retirement at age 62 for women was permitted. Payroll taxes were 4%.

1972 - Automatic cost-of-living-adjustments (COLAs), which index benefits to inflation, were introduced. The formula to calculate increases initially overstated inflation by 25%, and people born between 1910 and 1916 received an unintended windfall. Payroll taxes were 9.2%.

1993 - The amount of taxable benefits for upper income retirees was increased to 85%. Payroll taxes were 12.4%.

The solution is partial privaziation of accounts that will give the future workers better return into paying in soical security system since its been as stated above, the goverment borrow the funds put out IOU bonds. We dont fix social security soon the results are not gonna be pretty.

Answer 2

Social Security is a trust fund that has been around for a long time. It has been paid into and will be paid into all taxpayers. Most people over 62 benefit as do those so disabled as to be unable to work?

Is it fair, I don't know. Does it work? It seems to. Can it be used as a hot political topic? Yes, at election time both sides say it is messed up and they can fix it. After the election it continues to continue without their help.

Answer 3

Social Security Disability Form : http://DisabilityHelp.siopu.com/?TBh