Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-01
SECURITY FOR YOU
Tax Rises
For Social
Security

I YOUR Cake-HOIue pay is going
to be a little less this year II
your job is covered by social
security. But, the difference
every pay day will be SO small
that you may not notice it.
/ The reason: Your boss starting
today is going to deduct 214 per
cent of your pay for social Sc
curity, instead of the 2 per cent
he's been taking out since jan
uary /, 1855. The new tax rate
will apply to all your earnings up
the $4,000 a year.
The most the increase can cost
you as an employee is S10.50 a
year. Thus, your total social
security tax payment can't be
more than $94.50 a year. Your
boss has to contribute an equal
amount.
Averaging the increase out,
the maximum it can cost you is
20 cents a week. If your total
yearly earnings will be less than
81. 200, the amount of tax will be
less. For example: If your
weekly pay is $50. the increase
will be 1919 cents a week.
If you work for yourself-that
is. you're self-employed-and
you're covered by the social Sc
curity law, your social security
tax also has been increased
effective today. The increase is
from 3 to 33s per cent Of your
net earnings up to $4,000.
Thus. the maximum increase
for you is $l5.75 a year or an
average of about 33 cents a week
Your maximum Social Security
tax will be SALTS a year.
New Provision Causes Rise
The increase in the tax re-
suits from new disability pro-
vision Congress added to the So
cial Security law last year.
Summed up, the additional
cost is designed to cover the cost
Of making you eligible-under
certain conditions-for Social
Security payments If you're Sc
Iverely disabled and can't con-
tinue to work much.
Although the tax is effective
today. payments under the new
provisions can't start until July.
You'll be eligible for the pay
ments If you:
l. Are so or older, and
2. Have a medically estab-
lished mental or physical disa-
bility so severe that you can't
engage in any substantial work.
and
3. Have had the disability for
at least six months and it ap-
pears that the disability will last
for the rest Of your life. and
4. Have worked under social
security for five Of the 10 years
before you we're disabled and
for 10 of the SO months before
you were disabled.
The payments will be the same
as those you'd be entitled to If
you were IS and had retired.
The payments will range from
$50 to $108.50 a month.
However, any other payments
you get from the Federal Gov
eminent will be subtracted from
your payments if the other pay
ments are based on a disability.
This includes workman's COM
pensation paid to you through
your State and veterans pension
or compensation.
Therell be no additional
money paid to you because you
have dependents until you reach
IS. After reaching that age,
additional money will be paid.
With this new disability pro-
vision and the social security
tax increase, Congress also set
up a special bookkeeping ar
rangement. The money from the
tax raise will be put into a
special disability insurance trust
fund. From this fund, will come
the disability payments.
(You may write Ray Henry
in care Of this newspaper about
your own social security or
retirement problem. Please
inclose q stamped, self-ad-
dressed envelope and rs cents
in coin.)
From AP Newsfeatures)
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