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...
View Full Document
- Fall '10