Social Security In The United States

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What is SOCIAL SECURITY and what its role? The social security system in the United States had enacted on August 14, 1935; President Franklin D. Roosevelt signed the Social Security Act. The act created a range of which government programs, including unemployment insurance and federal welfare grants; however, the term social security designates typical for Old Age, Survivors, and Disability Insurance (OASDI) and related federal programs run by the Social Security Administration (Whaples, 2003). In the second half of the twentieth century, social security grew to become the most expensive federal government program, directly touching the lives of almost every American. It enjoyed widespread popularity for several decades, but by the close …show more content…

Furthermore, it provides many beneficial programs to the American people of the is not just a retirement program. Also, provides essential life insurance and disability insurance protection as well. Approximately 61 million people, or more than one in every six U.S. residents, collected Social Security benefits in June 2017 (Policy basics, 2017). Which include senior citizens make up about four in five beneficiaries, another one-fifth of beneficiaries received Social Security Disability Insurance (SSDI) or were young survivors of deceased workers. Currently, the government provides and support this program through taxes from the Federal Insurance Contributions Act (FICA); in which the Internal Revenue Service (IRS) Deduct from every working individual in the United States through payroll. FICA consists taxes of the old-age, survivors, and disability insurance, taxes, also known as social security taxes, and hospital insurance tax. Various rates do apply to these taxes. The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total (Miller, …show more content…

Nevertheless, Social Security’s costs will rise in coming years as baby boomers retire. The expert's estimation that, if policymakers took no additional action, Social Security’s combined OASI and Disability Insurance trust funds would have exhausted in 2034. After 2034, even if policymakers took no further action, Social Security could still pay three-fourths of scheduled benefits, relying on Social Security taxes as they collected. Alarmists who claim that Social Security will not be around when today’s young workers retire either misunderstand or misrepresent the projections. The long-term gap between Social Security’s projected income and promised benefits estimated at 1 percent of gross domestic product (GDP) over the next 75 years and 1.5 percent of GDP in the 75th

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