Actually, been paying SS since I was 14, but didn't start getting high pay until 1980, so I guess I understated the time period paid. It's been 6.2% for FICA and 1.45% for Medicare for quite a while with no limit on the medicare part. I was going by what the yearly summary showed in my last SS statement estimate. I included the Medicare in my $200K estimate also because I consider that the same stealing as SS.
It has been 6.2% and 1.45% (employee shares) since 1990. Social Security & Medicare Tax Rates That's a far cry from the 1% SS in 1949. The Medicare tax was .350 in 1966
The SS cap has been rising every year from 1950 ($3,000) to the present $90,000. Contribution and Benefit Base
When SS started in 1937, the FICA tax (employee and employer combined) was 1% on $3000. There was no Medicare tax. Today, the total FICA and HI tax is 15.3% (12.4% SS on $90,000 and 2.9% HI with no cap). The cap will go up again in 2006 and Medicare is in far worse shape than SS. The train wreck for entitlement programs is coming regardless.
Both parties will be forced to do something. What we are seeing now is a game of chicken with the Dems using the issue for their political advantage as long as possible. Personally, I think we will see another 1983 solution that will not solve the problem, but just kick the can down the road for future generations to deal with.