Adjusted for inflation, how much larger is the maximum annual Social Security payroll tax per person than what the federal government promised would be "the most you will ever pay"?
At the outset of the Social Security program, the federal government published an informational pamphlet stating that "you and your employer will each pay 3 cents on each dollar you earn, up to $3,000 a year. That is the most you will ever pay." Adjusted for inflation, this equates to a maximum annual tax of $1,802 per person. In 2017, the maximum payroll tax per person is $15,773, or 8.7 times the promised maximum. This figure does not include other taxes that are now used to fund Social Security, such as the tax on Social Security benefits.
DocumentationSocial Security Promise