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Social Security (United States)

In the United States, Social Security is the term for the federal Old-Age, Survivors, and Disability Insurance (OASDI) program. That program is run by the Social Security Administration.[1] The original Social Security Act was signed into law by President Franklin D. Roosevelt in 1935.[2] The current version of the Act, as amended,[3] involves many social welfare and social insurance programs.

Social Security gets its money through payroll taxes. Those taxes are called Federal Insurance Contributions Act tax (FICA) or Self Employed Contributions Act Tax (SECA). Tax deposits are collected by the Internal Revenue Service (IRS). Almost all salaried income, up to an certain amount set by law (see tax rate table below), is taxed by the Social Security payroll tax. All income over the set amount is not taxed. In 2019, the maximum amount of taxable money is $132,900.[4]

In 2017, Social Security spent $806.7 billion for OASDI and $145.8 billion for DI.[5]

History

Historical Social Security Tax Rates
Maximum Salary FICA or SECA taxes paid on
Year
Maximum
Earnings
taxed		 OASDI
Tax rate		 Medicare
Tax Rate		 Year
Maximum
Earnings
taxed		 OASDI
Tax rate		 Medicare
Tax Rate
1937 3,000 2% — 1978 17,700 10.1% 2.0%
1938 3,000 2% — 1979 22,900 10.16% 2.1%
1939 3,000 2% — 1980 25,900 10.16% 2.1%
1940 3,000 2% — 1981 29,700 10.7% 2.6%
1941 3,000 2% — 1982 32,400 10.8% 2.6%
1942 3,000 2% — 1983 35,700 10.8% 2.6%
1943 3,000 2% — 1984 37,800 11.4% 2.6%
1944 3,000 2% — 1985 39,600 11.4% 2.7%
1945 3,000 2% — 1986 42,000 11.4% 2.9%
1946 3,000 2% — 1987 43,800 11.4% 2.9%
1947 3,000 2% — 1988 45,000 12.12% 2.9%
1948 3,000 2% — 1989 48,000 12.12% 2.9%
1949 3,000 2% — 1990 51,300 12.4% 2.9%
1950 3,000 3% — 1991 53,400 12.4% 2.9%
1951 3,600 3% — 1992 55,500 12.4% 2.9%
1952 3,600 3% — 1993 57,600 12.4% 2.9%
1953 3,600 3% — 1994 60,600 12.4% 2.9%
1954 3,600 4% — 1995 61,200 12.4% 2.9%
1955 4,200 4% — 1996 62,700 12.4% 2.9%
1956 4,200 4% — 1997 65,400 12.4% 2.9%
1957 4,200 4.5% — 1998 68,400 12.4% 2.9%
1958 4,200 4.5% — 1999 72,600 12.4% 2.9%
1959 4,800 5% — 2000 76,200 12.4% 2.9%
1960 4,800 6% — 2001 80,400 12.4% 2.9%
1961 4,800 6% — 2002 84,900 12.4% 2.9%
1962 4,800 6.25% — 2003 87,000 12.4% 2.9%
1963 4,800 7.25% — 2004 87,900 12.4% 2.9%
1964 4,800 7.25% — 2005 90,000 12.4% 2.9%
1965 4,800 7.25% — 2006 94,200 12.4% 2.9%
1966 6,600 7.7% 0.7% 2007 97,500 12.4% 2.9%
1967 6,600 7.8% 1.0% 2008 102,000 12.4% 2.9%
1968 7,800 7.6% 1.2% 2009 106,800 12.4% 2.9%
1969 7,800 8.4% 1.2% 2010 106,800 12.4% 2.9%
1970 7,800 8.4% 1.2% 2011 106,800 10.4% 2.9%
1971 7,800 9.2% 1.2% 2012 110,100 10.4% 2.9%
1972 9,000 9.2% 1.2% 2013 113,700 12.4% 2.9%
1973 10,800 9.7% 2.0% 2014 117,000 12.4% 2.9%
1974 13,200 9.9% 1.8% 2015 118,500 12.4% 2.9%
1975 14,100 9.9% 1.8% 2016 118,500 12.4% 2.9%
1976 15,300 9.9% 1.8% 2017 127,200 12.4% 2.9%
1977 16,500 9.9% 1.8% 2018 128,400 12.4% 2.9%
Notes:
Tax rate is the sum of the OASDI and Medicare rate for employers and workers.
In 2011 and 2012, the OASDI tax rate on workers was set temporarily to 4.2%
while the employers OASDI rate remained at 6.2% giving 10.4% total rate.
Medicare taxes of 2.9% now (2013) have no taxable income ceiling.
Sources: Social Security Administration[6][7]

A limited form of the Social Security program started during President Franklin D. Roosevelt's first term. It started using "social insurance" to help during the Great Depression of the 1930s.[8]

Social Security (United States) Media

  • Private sector workers to social benefits recipient*
      Private sector workers
    *  Disability recipients *  Survivors benefits *  Retired Social Security

  • Social Security revenue and cost

  • Medicare, Medicaid, and social security spending

  • Social Security Cost of Living Adjustments

  • Remaining life expectancy—expected number of remaining years of life as a function of current age—is used in retirement income planning.

  • Social Security Trust Fund

  • AFSCME supporter, an older man, federal worker wearing gray slacks, holding sign over his head - Hands Off Our Social Security. Photo at a rally in Senate Park, Washington DC, Feb. 12, 2013.

  • Payroll tax rates history

  • For people in the bottom fifth of the earnings distribution, the ratio of benefits to taxes is almost three times as high as it is for those in the top fifth.

  • Single men with different wages and retirement dates

References

  1. ↑ Social Security Administration, Social Insurance Programs, retrieved November 1, 2016.
  2. ↑ Social Security Act of 1935 "Legislative History 1935 Social Security Act". Retrieved November 8, 2006.
  3. ↑ [42 USC 7] "US Code—Title 42—The Public Health and Welfare". Archived from the original on October 12, 2006. Retrieved November 8, 2006.
  4. ↑ United States Social Security Administration. "Contribution and Benefit Base".
  5. ↑ A SUMMARY OF THE 2018 ANNUAL REPORTS, Social Security and Medicare Boards of Trustees
  6. ↑ "Contribution and Benefit Base". Social Security Administration. November 2017. Retrieved November 30, 2017.
  7. ↑ "Social Security & Medicare Tax Rates". Social Security Administration. Retrieved November 30, 2017.
  8. ↑ "A Reader's Companion to American History: Poverty". Archived from the original on February 10, 2006. Retrieved June 28, 2016.

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