Tag: Social Security payroll tax
The net benefit of the programs to the middle class dwarfs the $153,000 in average net benefits for retired households in the top fifth of the lifetime earnings distribution, and it also exceeds the $196,000 gain for the bottom fifth. The middle class is defined as the second, third, and fourth of the five earnings…
The brief’s key findings are: The Social Security payroll tax supports: 1) the cost of current benefits; and 2) the “legacy cost” of paying benefits in excess of contributions to early generations. Covering current costs through the payroll tax gives workers’ a sense that they have earned their benefits and provides a stable revenue sourc…
