240 likes | 340 Vues
2. How Does Social Security Work?. Each worker pays 12.4 percent of the first $84,900 of his wages into Social Security. (Technically, his employer pays half, but economists agree that employers reduce wages to make up for this, so the whole burden is on the worker.)10.6 percent of the tax pays for
E N D
1. 1
2. 2
3. 3
4. 4
5. 5
6. 6
7. 7
8. 8
9. 9
10. 10 What is a Benefit Cut? Many critics charge that reform plans would cut benefits. But versus what?
For instance, an average wage worker retiring in 2042 is promised a benefit of $896 per month (in todays dollars).
Under one of the Presidents Commissions plans, that same worker would receive $806 from the traditional system, a cut of $90.
But this ignores that
Under law, the insolvent Social Security system can actually afford to pay that worker just $655 per month, plus
The personal account would add $180 per month, raising total Social Security benefits to $986 per month.
Thats $90 more than the current system even promises, and $331 more than it can actually pay.
11. 11
12. 12
13. 13
14. 14
15. 15
16. 16
17. 17
18. 18
19. 19
20. 20
21. 21
22. 22
23. 23
24. 24
25. 25