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How much is taken out in taxes

how much is taken out in taxes

Where Does The Money Come From?

In contrast, Social Security Disability Insurance is funded by taxpayer dollars. As of the 2011 fiscal year, the amount that is deducted from every Americans paycheck in order to cover the needs of Social Security Disability Insurance is 1.8%. Unfortunately, this amount is in sustainable for Social Security Disability Insurance to continue making payouts at the rate is currently doing so. In essence, more is being paid out in disability payments than being taken in as a result of tax collection.

The fact that there’s been a growing discrepancy between money going into the program, and money being taken out for disability payments is not surprising. Over the last two years alone, the number

of individuals who receive Social Security Disability Insurance payments has jumped nearly 10%. In this way, the program has become financially unsustainable. There have been initiatives to increase taxes in order to help save the program, but unsurprisingly this is not a popular idea among the majority of American workers.

As of the writing of this article, it is unlikely that taxes will be raised for the sake of Social Security Disability Insurance. However, it is important to know how much money goes into the program by virtue of taxes. Clearly, 1.8% is not enough to support the payments that Social Security Disability Insurance gives to beneficiaries, and this is the root of the Social Security Disability Insurance problem.

Category: Taxes

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