HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » The payroll "tax&quo... » Reply #41
Introducing Discussionist: A new forum by the creators of DU

Response to WCGreen (Reply #38)

Fri Jan 4, 2013, 12:31 AM

41. no - it's determined by how much you earned

http://www.ssa.gov/oact/progdata/retirebenefit1.html

There is a close relationship between earnings and contributions, but they are not the same. That past earnings are indexed to inflation and that the "contribution" percentage may have changed over the years are things that make earnings and contributions different.

http://www.taxpolicycenter.org/taxfacts/content/pdf/ssrate_historical.pdf
The current combined employer & employee rate of 12.4% has been in effect since 1990. From 1974-79 it was 9.9%. That a worker retiring today paid in at lower rate prior to 1990 is not considered, it's the inflation adjusted earnings during those years.

There is no personal FICA fund. Money you pay in today goes out to someone else at the end of the month.

Reply to this post

Back to OP Alert abuse Link to post in-thread

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 44 replies Author Time Post
WCGreen Jan 2013 OP
kelliekat44 Jan 2013 #1
WCGreen Jan 2013 #3
dkf Jan 2013 #2
WCGreen Jan 2013 #4
dkf Jan 2013 #9
CTyankee Jan 2013 #24
dkf Jan 2013 #28
CTyankee Jan 2013 #29
dkf Jan 2013 #31
CTyankee Jan 2013 #39
Major Nikon Jan 2013 #33
AZ Progressive Jan 2013 #44
enlightenment Jan 2013 #5
WCGreen Jan 2013 #8
TheProgressive Jan 2013 #6
W_HAMILTON Jan 2013 #7
WCGreen Jan 2013 #10
W_HAMILTON Jan 2013 #13
WCGreen Jan 2013 #17
W_HAMILTON Jan 2013 #20
ecstatic Jan 2013 #40
stopbush Jan 2013 #34
AnotherMcIntosh Jan 2013 #11
WCGreen Jan 2013 #14
AnotherMcIntosh Jan 2013 #15
WCGreen Jan 2013 #18
Igel Jan 2013 #23
WCGreen Jan 2013 #25
Sgent Jan 2013 #37
WCGreen Jan 2013 #38
LineLineLineLineLineNew Reply no - it's determined by how much you earned
blcartwright Jan 2013 #41
WCGreen Jan 2013 #42
blcartwright Jan 2013 #43
kentuck Jan 2013 #12
RomneyLies Jan 2013 #16
WCGreen Jan 2013 #19
indepat Jan 2013 #21
Poll_Blind Jan 2013 #22
doc03 Jan 2013 #26
avebury Jan 2013 #27
bhikkhu Jan 2013 #30
SWTORFanatic Jan 2013 #32
WCGreen Jan 2013 #36
alarimer Jan 2013 #35
Please login to view edit histories.