11-30-07 - GOV 310L 11/30/2007 1:02:00 PM Social Security:...

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GOV 310L 30/11/2007 14:02:00 Social Security: Insurance principal—get benfits in return of your contributions made over time Payroll tax—how you contribute to SS.  You will be taxed 6.2% of up to  $90,000 of your total earning.  Your employer will then have to match an  equal amount on your behalf (so an additional 6.2% on up to $90,000 of your  wages) Pay-as-you-go—this it a system in which the current contributions made go  toward the current reited people, not benefiting the ones that are actually  currently paying into the system.  This is becming a problem as the numerb of  retirees increases and the workforce gets smaller. Indexation—SS was “indexed” where the payment benefits will automatically  increased the amount of $$$ issued and keeping the amount of money the  same relatively.  This occurred in 1972 with some legistlation that was passed
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11-30-07 - GOV 310L 11/30/2007 1:02:00 PM Social Security:...

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