ECON-2000 Lecture Notes - Lecture 31: Ida May Fuller, Tax Rate, Progressive Tax
Document Summary
Social security: government-administered retirement program, set up in 1935 by fdr as part of new deal, requires workers to contribute a portion of earning to the social security trust fund, in its infancy: Lots of workers contributing to trust fund. Workers paid 2% of wages (half paid by employer, half by self: today: Millions of baby boomer beginning to retire. The first social security recipient: ida may fuller, in january 1940, she worked for three years, taxed a total of . 75, she lived to be 100, collected ,888. 92, if this were typical, this would not be sustainable. Why do we have to pay more: increasing older people, more people retiring. Recent increases in government spending: increased government spending increased recently, increased defense spending from 16. 5% to 19. 1, increased social security and medicine, government response to great recession. Will be less than marginal tax rate due to progressive tax system: how tax brackets work:
