How Social Security Invests Its $2.9 Trillion in Excess Cash
The Social Security program, which pays benefits to more than 61 million people a month (including 42 million retired workers), generated $957.5 billion in revenue last year, according to the latest Social Security Board of Trustees report.
The vast majority of this revenue (87.3%) was derived from a 12.4% payroll tax on earned income between $0.01 and $127,200. The maximum taxable earnings amount is raised in most years to keep pace with the National Average Wage Index. Thanks to the cap, roughly nine out of 10 working Americans are paying into Social Security with every dollar they earn, while higher-income workers are receiving at least a partial payroll tax exemption on earned income above $127,200.
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Source: Fool.com
