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To: LoneRangerMassachusetts
he never tells the whole story that the middleclass pays the lions share of social security and FICA. This is 15 percent on gross income with no opportunity to offset with deductions.

They also get the lion's share of the benefits. Moreover, the "rich" pay the same SS contributions up to the earnings cap and more HI contributions, which are uncapped. There are no offset deductions when it comes to paying your SS/HI contributions.

Social Security & Medicare Tax Rates

Social Security benefits are based on your lifetime earnings. Your actual earnings are adjusted or “indexed” to account for changes in average wages since the year the earnings were received. Then Social Security calculates your average indexed monthly earnings during the 35 years in which you earned the most. We apply a formula to these earnings and arrive at your basic benefit, or “primary insurance amount” (PIA). This is how much you would receive at your full retirement age—65 or older, depending on your date of birth.

Your benefits are not based on your total contributions.

49 posted on 09/22/2007 3:58:53 PM PDT by kabar
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To: kabar
Your benefits are not based on your total contributions.

And they're capped, too.

59 posted on 09/22/2007 4:45:58 PM PDT by woofer (Earth First! We'll mine the other eight later.)
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