Workers have been paying higher social security taxes than necessary for 30 years. In 1983,

[aggiesal]

25. Let's back up the cart . . .

There was a reason for this.

Currently we are the only generation funding OUR retirement and OUR PARENTS retirement.
You see, Social Security was extremely underfunded by the time the Baby-Boomers were set to retire.
Reagan of all people saw this, and passed a law that raising the maximum amount. At that time it was
only around $53K (I think), while today its around $108K.
Doing this saved Social Security for all of us.
There is enough money in Social Security to pay 100% till 2042(?), and then it pays out about 75%
after that. If we raise the limit from $108K to unlimited, Social Security would be funded for everyone
forever (And you know Republicans won't let us have that!!!)

As far as the SS Trust fund, the gov't bought gov't bonds with the SS funds. Every month the gov't
cashes in some of those bonds to cover the shortfall we are currently experiencing. But, this was planned.
We knew that around 2010, that SS would be paying out more then it was taking in. It will be this was
until 2042(?) when the surplus finally runs out. That's why SS will only cover around 75% after that,
unless the rules are changed.