Social Security Table » Depression http://social-security-table.com Mon, 28 Dec 2009 03:53:48 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Reducing Taxes On Social Security – Advantages And Disadvantages Of This Debatable Issue http://social-security-table.com/reducing-taxes-on-social-security-advantages-and-disadvantages-of-this-debatable-issue/ http://social-security-table.com/reducing-taxes-on-social-security-advantages-and-disadvantages-of-this-debatable-issue/#comments Sat, 07 Nov 2009 23:06:31 +0000 admin http://social-security-table.com/reducing-taxes-on-social-security-advantages-and-disadvantages-of-this-debatable-issue/
Abhishek Agarwal asked:


The Social Security Act of 1935 is among the primary acts the United States government is imposing. The acts main function is to give a lifetime reward to workers who have retired by the age of 65. That was the time of the Midst of Depression and where programs regarding social security were then based on. Due to the expansion of these programs, the programs are considered to be a leading federal program. The funds for these programs demand almost a quarter of the funds in the federal.

For in a long time now, the payments given by the social security programs were free of tax. This was the setup since for the most part of the grantees life, the grantees were paying for their social security record.

In this case, change has always been a part of our life. Just like for programs in Social Secuirty, it has changed over the years and are still subject to change. Presently, a part of the payments given by the programs is taxable. There was one period where the benefits were almost taxed by 50% and other brackets even reached 85% taxable rate. Various measures were tried and employed in reducing the tax rates of the payments, however majority of them were futile. Due to the changes, it won’t be a surprise if there would come a year where people would pay the benefits of their social security at a very high rate. This could be partly attributed to increasing population. One important setback that is situation reflects is that because of the increasing population, some time in the future many people would become dependent on the social security programs especially the benefits when the time for their retirements comes. The setback could probably be best solved if the tax rates could be lessened by the government. In this way, there’s a higher probability that people would gain more income.

Another possible solution that could be taken as of the moment is to increase the rates of the taxes imposed on present employees. This way could somehow ensure that while there is an increasing population, the entire system would not necessarily fall apart. Presently, employees pay taxes after earning $ 90,000 firstly. The employees are still taxed similarly, since in this way the government is able to increase the cap rather than having the employees pay a higher percentage. In this way, the burden in placed on the higher bracket employees rather than those middle class ones.

One concern arising presently is that the social security and its benefits are now put at risk. There are retirees now enjoying benefits that people in the future would not be able to perhaps enjoy. Currently, it is determined that employees now would be getting 25% less of the benefits that retirees are enjoying presently. However retired grantees are also on the lookout to make sure that even with the booming population, taxes would be reduced so that we could avoid having people living underneath the poverty line.

Those who are currently working and paying for their benefits could be assured that in the long run they would be able to enjoy the benefits they are saving for now with additional savings for that matter. The present situation demands that the government find ways to reduce the taxes so as to avoid the conflict that the benefits enjoyed by the retirees presently would not be the same as to the retirees in the future. The changes could happen given that bad case social security programs are now encountering, it would perhaps be possible for the government to eventually lessen the taxes on these benefits and programs.



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]]> http://social-security-table.com/reducing-taxes-on-social-security-advantages-and-disadvantages-of-this-debatable-issue/feed/ 0 Reminiscing the Social Security Law in the US http://social-security-table.com/reminiscing-the-social-security-law-in-the-us/ http://social-security-table.com/reminiscing-the-social-security-law-in-the-us/#comments Thu, 27 Aug 2009 13:51:09 +0000 admin http://social-security-table.com/reminiscing-the-social-security-law-in-the-us/ Jamil Estorninos asked: 1

It is the Great Depression of the ‘30s that necessitates the creation of a Social Security program in the US. Poverty reaches its highest peak among older citizens that time and something has to be done.

The Social Security Act, which is considered the first Social Security law, was drafted under the administration of President Roosevelt. It was signed into law on 14 August 1935.

The act addresses many issues, amongst which includes:

• Old age

• Poverty

• Unemployment

• Survivors

• Disability

The Social Security Administration (SSA) is the government agency tasked to administer the program. Later on, it added health insurance benefits in the scope of the Social Security under the Medicare program.

Generally, benefits under the Social Security law are paid based on the workers’ employment record and social security taxes or contributions.

The Social Security Act evolved during the past years as new social and economic issues emerge. Changes were made to provide more protection and coverage for the Social Security members.

The so-called OASDI or the Federal Old Age, Survivors and Disability Insurance pays monthly benefits to the following qualified individual/s:

• Retirees

• Family of a deceased worker

• Unemployed worker due to illness

• Unemployed worker due to accident

Nowadays, the major coverage handled by SSA, where qualified members are entitled to benefits under the Social Security law, are the following:

Retirement benefits

This benefit is given to a worker who worked and paid Social Security taxes upon retirement. The worker earns credits during the time he was working. His entitlement to benefits and the amount thereof will be based on his earned credits.

The number of required credits depends on the year the worker was born. If he was born in 1929 or later, he will need 40 credits or an equivalent of 10 years of work.

The amount receivable will also vary depending on the worker’s retirement age. If he opted to retire early at the age of 62, his benefits will not be as high when he retires at older age.

Disability benefits

The SSA pays disability benefits under two programs: The Social Security disability insurance (SSDI) and the Supplemental Security Income (SSI).

SSDI is paid for people who were incapacitated to work because of a medical condition that is expected to last at least one year or result in death.

Members of the family of a disabled worker can also benefit under this program.

It is SSI program which will be applied for payments to people with low income who are 65 years of age or over or are blind or have disability.

Survivor benefits

Like retirement benefits, survivor benefits are based on the accumulated credit earned by a worker, during the time he was working and paying Social Security taxes.

The family of a worker is entitled to receive this compensation in the event the working member dies.

Medicare

This is a health insurance program available for people 65 years of age or older. It is also available for person under the age of 65 with certain disabilities and any age with permanent kidney failure requiring dialysis or a kidney transplant.

To know more information regarding social security benefits and other claims, you can consult with our experienced Los Angeles social security lawyers. You can visit our website to avail of our free case evaluation.

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