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Unformatted text preview: o The costs made critics claim that there were cycles of dependence Social Security/Medicare FY 2008 Spending estimates o Social Security: $615 Billion o Medicare: $392 Billion o 34% of total spending FY 2012 Spending estimates o Social Security: $799 Billion (+30%) o Medicare: $487 Billion (+24%) o 34% percent of total spending Funding Payroll Tax o 6.2% of wages up to $40,000 (Social Security) o Employer and employee each pay this, total about 15.6% o Average amerian pays about $2,700-3,000 Benefits Social Security: o Retirement Benefits (62, 65) o Survivor Benefits o Disabilities o On average, each recipient gets about $400 a month Key factors: o Social security/Medicare is not means tested o Benefits paid out of current funding...
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