Sunday, January 06, 2013

US - social security issue



Every pay check, the workers in USA contribute to the Social security fund. For the immigrants or employees living in US for a short term, this is a money going to a black-hole. There are no returns for the dollars that are paid as SS tax. Here are a couple of articles in NewYork times describing the issues, the second one giving a more visual representation.


http://www.nytimes.com/2013/01/06/opinion/sunday/social-security-its-worse-than-you-think.html?smid=pl-share

http://www.nytimes.com/interactive/2013/01/06/sunday-review/social-securitys-flawed-forecasting.html?smid=pl-share

This has been one of the major issues / concerns in US. The promising solution to this problem is to raise the taxable income. Currently, as per the article, only $113,700 of the total income is subject to SS tax. Even if one earns $1 million as annual income, one will be paying SS tax only for $113,700. This may not completely solve the issue, but helps to stabilize the SS funds and not run into deficits.