The annual growth in wages subject to Social Security taxes is 3 percent.Given the payroll tax rate, the growth in funds available to pay pension benefits is also 3 percent.

Question

Quizplus · Accepted Answer

The growth in wages subject to Social Security taxes is directly tied to the payroll tax rate, so if wages are growing at 3 percent, the funds available to pay pension benefits will also grow at 3 percent assuming no other changes to the system.

The Annual Growth in Wages Subject to Social Security Taxes