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Unformatted text preview: OASI. We are going to focus only on OASI, the retirement portion of social security. Between 1937 and 1949, only the first $3,000 of gross income earned was taxed, known as the maximum earnings taxed The social security tax rate back then known as the maximum earnings taxed. The social security tax rate back then was 1%. So the maximum tax any employee paid for that year was $30.00. Of course the employer contributed $30.00 as well for a total of $60.00 credited to the account. Also note, that this 1% tax covered only retirement benefits at this time. There was not a disability insurance fund (started in 1957) or a medicare program (started July 1, 1966) in existence at this time either. 24...
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- Fall '10