To resolve Social Security's looming financial shortfalls, one proposal is to increase the program's payroll tax rate from 12.4% to 15.07%. If this idea is adopted, how much in added taxes would the average wage earner pay during a 45-year career?
Under this plan, average wage earners would forfeit an additional $73,458 of their salaries to payroll taxes over the course of a 45-year career. This figure is measured in inflation-adjusted 2012 dollars. Without accounting for inflation, the figure is $150,323.
DocumentationRaising Taxes to Save Social Security