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Show SOCIAL SECURITY IS HIGHER THAN INCOME TAX Social security taxes have become a larger cost for many families than the total Federal income taxes paid by the family wage earner for the support of all other functions func-tions of the Federal Government. Govern-ment. This fact is pointed out in a study released by Utah Foundation, Foun-dation, the private tax research organization. Foundation analysts observe that the combined social security secur-ity taxes paid by employes and emnloyers next year will be $348 per year for anyone earning earn-ing $4800 or more. The Federal Fed-eral income tax paid by a man with a wife and three children and total income of $4800 is only $269 per year, or $79 less than the same wage earner must pay for social security alone. For wage earners with larger larg-er families, the difference is even greater since the Federal income tax would be less with more exemptions. Even for the "average" family consisting of a man and a wife and two children, the Federal income tax of $389 on a $4800 income is only slightly higher than the $348 social security tax paid by an employee and his employer. em-ployer. The Foundation report notes that the tax rate paid by employees em-ployees and employers will be raised from 3Vs to 3 on the first of the year. For workers with annual earnings of $4800 or more the increase will amount to $24 each per year for employees and employers, em-ployers, or $48 per year for both. the maximum combined tax was $60 with scheduled increases in-creases calling for an eventual combined tax of $180 per year. With the benefit changes that have been made through the years, the present Social Security Secur-ity Act will require a combined tax of at least $444 in 1968 and the years thereafter. This will mark the ninth increase in social security taxes since the program was first enacted in the mid-1930's. mid-1930's. Still to come are two additional tax boosts scheduled sched-uled for 19G6 and 1968. In JflfiS the combined social security se-curity tax rate will reach 91A (4 each for both employees and employers). According to the Foundation study, these scheduled rates are all based on present tax and benefit laws. Any increase in benefits or the adoption of new programs to be financed through Social Security probably prob-ably would necessitate still higher taxes. The report observes that the history of the social security program has been one of constant con-stant liberalizations and increased in-creased taxes. When the program pro-gram was first enacted in 1935, j |
