- Medicare/Medicaid (24% of spending)
- Social Security (22% of spending)
- Defense (13% of spending)
- Net interest on the debt (11% of spending)
Biden never discusses cutting expenses as part of the solution because he’s for big government and getting bigger. When he shares his complete lack of understanding about payroll tax by saying that the wealthy should pay their fair share, he fails to forget that his substantive change to Social Security taxation would impact corporations, small business owners and inevitably the job market.
Rep. Greg Steube, R-Fla., joins ‘The Bottom Line’ to discuss President Biden’s intent to let Trump-era tax cuts expire.
If you don’t understand how Social Security (FICA on your paystub) tax works today, here’s a basic explainer:
As an employee, you pay 6.2% of every paycheck into Social Security until you hit the FICA wage base cap, which is $168,600 in 2024.
In addition, your employer also pays the same 6.2% with the same cap.
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If you are self-employed, you get the full enjoyment of paying both halves of the Social Security tax. (Note: You do get a small tax deduction come tax filing time.)
We know Social Security’s trust funds are facing a black cloud depletion date. Based upon the current projections, the program’s trustees project that Social Security’s combined funds may run out in 2035, at which point Americans will only be able to get 83% of their current benefits unless Congress acts sooner.
