Well, here's the problem. Social Security was launched when there were more than 40 workers carrying the costs of each retiree. Today there are three workers for each Social Security recipient, and we're heading to a 2-1 ratio soon.
Holy dwindling support structure, Batman! SS must clearly be on its last legs, given that no one took any of this into account and made any adjustments to the system over all those decades! Oh ... wait:
- The Social Security Act of 1935 set the wage threshold at $3,000. Income earned above this amount was not subject to Social Security taxes. This threshold was a fixed amount that was not indexed for inflation.
- Between 1950 and 1971, various Congresses and Presidents passed at least 6 laws to increase the threshold.
- In 1972, the Congress and President Nixon passed a law to automatically index the threshold based upon the national average wage.
- In 1977, the Congress and President Carter passed a law that increased the threshold in 1979, 1980, and 1981 at higher rates than the growth in the national average wage.
- Since 1982, threshold increases have been based upon growth in the national average wage.
- In 1951, the wage threshold was 129% of the national average wage. In 1998, the threshold was 237% of the national average wage.
- The Social Security Act of 1935 set the initial tax rate at 2% and specified increases that would bring the rate to 6% by 1949.
- In 1939 and during the 1940's Congresses and President Roosevelt postponed the tax rate increases that were scheduled in the original Social Security Act. The tax rate of 6% was delayed until 1960.
- Since 1950, various Congresses and Presidents have passed at least 9 laws to increase Social Security tax rates above the 6% level specified in the original Social Security Act.
Oops. It's a good thing Goldberg has no shame. Otherwise, he'd be, you know, embarrassed or something.
No comments:
Post a Comment