Are you Confused?

Are you confused as to what all the clamor concerning President Bush's Social Security plan? Perhaps it might help to know what the current plan is.

President Franklin Roosevelt established the Social Security Program on August 14, 1935.

After Social Security numbers were assigned, the first Federal Insurance Contributions Act (FICA) taxes were collected, beginning in January 1937.

Medicare became law on July 30, 1965. Nearly 20 million beneficiaries enrolled in Medicare in the first 3 years of the program.

In 1972 the SSI program was created and automatic Cost-of-Living-Adjustments (COLAs) were enacted.

In 1937 there were 53,236 beneficiaries, and in 2002 there were 46,444,317.

An estimated 159 million workers, 96% of all workers, are covered under Social Security.

There are currently 3.3 workers for each Social Security beneficiary. By 2031, there will be 2.1 workers for each beneficiary.

Social Security is financed by YOU with a payroll tax of 12.4 percent of wages. 6.2 percent is paid by you and 6.2 percent paid by your employer.

If you are self-employed, you pay the full 12.4 percent. The tax only applies to the first $88,000 of wage income.

The average monthly benefit for a retired worker is over $900 a month. This figure is based on the worker's earnings history over his lifetime. The maximum benefit is approximately $1,700 a month. Benefits are tied to the rate of inflation once workers retire, so benefit levels should keep up with the cost of living.