Word: taxed
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Dates: during 1980-1989
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...think [a tax package] will have to be proposed," Flaherty said...
That honor goes to the regressive, unfair system of payroll taxes that pays for those benefits. All wage-earners in America are required to kick in 7.51 percent of their earnings (the FICA tax) to the Social Security system. Even those workers who are so poor that they are exempt from the federal income tax have to pay the full FICA tax--no exemptions or deductions...
...tax is regressive because it does not apply to earnings over $48,000 per year. Nor does it apply to "unearned" income such as interest on bonds. Thus, Social Security takes a huge bite out of a minimum-wage janitor's paycheck, while it costs next to nothing for a lawyer with a six-figure salary or a Donald Trump who makes his money by shuffling assets...
...FICA tax is unfair not only to workers, but to their employers as well. Every business must match the FICA contributions of the workers on their payrolls, whether or not it makes a profit. So when profits are down, the incentive is all the greater to lay off workers...
Because so many people receive Social Security benefits, the FICA tax rate has soared in recent years. When the system began in 1937, the rate was one percent. Next year, it will be 7.65 percent...