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The Social Security tax rate is 12.4%, not 6%. The “employer contribution” exists solely as a mechanism to obfuscate how much tax is being taken out of people’s
by jandrewrogers 4y ago
The Social Security tax rate is 12.4%, not 6%. The “employer contribution” exists solely as a mechanism to obfuscate how much tax is being taken out of people’s paychecks to pay for it.
- matthewdgreen 4y agoThis was increased from ~10% to 12.4% in 1983 under the Reagan Administration. The extra funds weren't paid to beneficiaries: they were intended to build up a trust fund for future generations, but they were instead borrowed by the government for general spending, and to mask the effect of Reagan's tax cuts.