Understanding Social Security Tax

What is the primary purpose of the Social Security tax?

• To fund public schools

• To provide healthcare for all

• To support retirees and people with disabilities

• To build infrastructure

What is the Social Security tax rate for self-employed individuals?

• 15.3%

• 12.4%

• 10.0%

• 6.2%

What happens to income above the Social Security tax cap?

• It is taxed at a lower rate

• It is exempt from all taxes

• It is taxed at a higher rate

• It is not subject to Social Security tax

Why is there concern about the future of the Social Security program?

• Because of reduced benefits

• Due to increased government spending

• Because of an aging population and longer life expectancies

• Due to decreasing tax rates

What is a recommended strategy to complement Social Security for retirement?

• Rely solely on Social Security

• Invest in real estate only

• Start saving and investing early in retirement accounts

• Avoid all forms of investment