Are Social Security SSI and SSDI all funded through fica and self employment taxes?
I'm trying to read through the wording..the terms may not be
Remember the political campaigns saying they wanted the SS taxes
to be in a "lock box"? I think that's what your asking, at least in
SS, etc are intended to be fully funded by the payroll taxes.
They were not expected to use other taxes, nor were the funds
collected to be used for anything else. So, what happens when there
is a projected shortfall, on either side of the equation?
Politics..change the equation or at least the projection!
Self employment tax is not a separate tax...it just means the
portion of FICA that would otherwise be required to be paid by an
employer is paid by the self employed person.."his business"...if
you will. The tax paid totals the same if employed by someone else
or self employed.