Here’s how many people rely on Social Security in 2023 and where the funds come from.
It was created in 1935 and typically makes up almost one-fifth of total federal spending.Social Security was created with the goal of providing economic security to the nation’s elderly; it was expanded in the 1950s to include support for the disabled.
Social Security is the largest program in the federal budget. The program provides benefits to about 20% of the American population. Nearly 9 out of 10 individuals over the age of 65 receive benefits, and those benefits represent about 30% of total income to older Americans.is mainly funded through a dedicated payroll tax created by the Federal Insurance Contributions Act. Employers and employees each pay 6.2% of wages, with a cap on the amount of wages subject to the tax .
Those who are self-employed pay both the employee’s and the employer’s share of the tax. Those revenues are credited to the OASI and DI trust funds, which keep track of the programs’ receipts and expenses. The programs also receive income from a tax on Social Security benefits paid by higher-income beneficiaries, as well as income generated by the investment of the trust fund reserves in non-marketable U.S. Treasury securities. However, from the perspective of the government’s overall budget, the interest income paid to the trust funds by the Treasury has no effect. Although it is a receipt to the trust funds, it is an equal dollar expense to the Treasury.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Social Security update: Direct payment worth up to $4,555 goes out to millions in 10 daysMillions of retired seniors will receive the first wave of September retirement checks, which are worth up to $4,555 for people who retire at 70, from Social Security in just 10 days.
Read more »
Social Security update: Direct payment worth $914 arrives in 26 daysThe second payment of up to $914 for individual filers in September will go out to Supplemental Security Income recipients in 26 days, part of a rare double payment in the month.
Read more »
Can Social Security Survive? Here are some factsHere’s how many people rely on Social Security in 2023
Read more »
3 ways to minimize taxes on your social securityDepending on income, up to 85% of benefits may be taxable. Here are a few ways to reduce that tax bite, by planning ahead.
Read more »
Jessica Pegula and Madison Keys reach fourth round as Americans continue to shine at US OpenJessica Pegula advanced to the fourth round of the US Open with a hard fought 6-4 4-6 6-2 victory over Ukraine’s Elina Svitolina, as the American players continue to impress at their home tournament.
Read more »
Norman Lear on uniting Americans with laughterTV legend Norman Lear, whose credits include such hit series as 'All in the Family' and 'Maude,' always managed to make audiences laugh about dangerous topics: Racism, sexism, bigotry, homophobia. And today, having recently turned 101, he's determined to find out if we'll still laugh together. He sits down with 'Sunday Morning' senior contributor Ted Koppel to discuss his upcoming projects, including a possible remake of one of the most controversial sitcom episodes of all time. (Originally broadcast October 16, 2022.)
Read more »