Show Cost Now 15 Times Cost of Social oda Security g Social Security taxes have been raised seven times in the past d decade compared to five increases In the 58 1943 de cede cade and no Increase In the first decade of the program program- According to a research brief issued by Utah Foundation a private profit nonprofit agency the January 1 increase raised the covered wage base from to This brings the maximum annual tax for one employee half of it paid by bythe the employee half by his em to This Is or per cent above the maximum Social Security tax In 1967 1907 36 times the max tax In 1958 and more than II 11 times the In 1948 1848 when the original schedules were still sUIl In effect INCREASES COMING Six more Increases are shed sched for the next 20 years under the 1967 Social Security amendments which took effect on J nunry I 1 1968 If no further Increases are enacted enacted- an assumption far from certain in the light of past experience the foundation points out out-by 1987 1937 the maximum annual tax per employee will have risen to This is 34 per percent percent cent cent above the 1968 maximum tax nearly five times that of 1958 and more than 15 times that of 1948 A salaried worker in utah with a wife and four children taking standard income tax deductions on nn an annual salary of will pay less in corn com Federal and state income taxes this year than will be paid on his earnings b by him him- himself self and his employer in Soc Soc- SocIal lal Ial Security taxes the foundation reported Federal in i come tax liability would be and state income tax Ua liability a total of This is about 77 C 11 per cent less than will be eel col in Social Security taxes on his earnings Many employers are forced to absorb the employee ee portion of the Social Security tax through wage Increases and must therefore carry the entire burden Some economists are concerned with the threat to the national economy which is posed by rising Social ity costs especially when the total combined d employer and employee tax rate goes beyond 10 per cent as it Is scheduled ed to do in 1971 Economists have also ex ex- ex expressed pressed con conCern ern over changes in the Social Security program which tend to make It more of ofa ofa a pe and less of an insurance based operation Wel Wel- Wel type fare assistance should be beI I frankly recognized as such and andi i kept clearly separate from the type insurance funding of Soc Sac lal ial Security they say Critics are also concerned that people now retiring are receiving Soc lal ial Security benefits disproportionately high in relation to their own contributions at the expense of the next generation of of workers The most recent Social Sec Sec- Security Security tax increases were isis im posed to finance Increased bene bene- benefits fits beginning in March The board In- In Increase in crease in benefits Is 13 per cent ent while minimum monthly p pay y- y Estimated cost of the 1967 Social Security amend ments is 36 billion a compro- compro compromise compromise mise between the 34 billion program originally approved by bythe the House and the 58 billion program voted by the Senate |