| Show Higher Earnings Bring Higher Tax Burden Changes in the Social Security law enacted in 1972 will raise the amounts paid by all wage and self employed Americans subject to the law's but the heaviest will be on higher according to Utah the private nonprofit research IN the Social Security tax paid by covered wage earners and their go up about percent up to the present ceiling on covered the Foundation noted in a research brief released this Next the ceiling on earnings subject to the tax will go up to and tax payments of those making a year will be increased 25 percent and the increase on earnings of and above will go up 35 Employer contributions will be increased in like THERE WILL be no change in the tax rate in but the ceiling on earnings subject to the tax will again be to so that the tax on salaries of and more will go up an additional 11 on incomes of self-employed persons will also be although not as steeply as those on employees and In the category of the heaviest impact will also be on higher due to the progressive increases in amounts subject to the IN ADDITION to succession of rate increases over the the 1972 amendment to the Social Security law provides for the first time an escalator which will progressively raise the tax as the cost of living Without taking this escalator factor-which cannot be projected into scheduled increases in Social Security taxes on workers and employers will be up more than 40 percent over 1972 levels by the year for those earning up to a Above the level the increases are dramatically and will measure percent on annual 72 percent more than at It is expected that the automatic increases will make the tax bite much and some analysts have predicted that the annual deduction on a top covered wage will by point out that the U. S. Bureau of the Census reports that medium income for men working full lime was in On this vast numbers of American wage earners will be directly affected by the higher subject taxable wage It has become more or less standard for Social Security benefits to be increased in election but 1972 produced a double the Foundation pointed A general 20 percent increase in pensions was voted in and a number of special benefits were approved in legislation enacted on October just prior to the adjournment of The added benefits principally aid low-paid disabled and early age and late age THE AMOUNT which a without sacrificing any Social Security pension was raised from to a a change that Social Security Administration estimate will make an additional persons eligible for and increase the Foundation |
