PAYROLL TAXES
Taken from: A Guide to Social Security & Medicare
28th edition, William M. Mercer, Inc.
and the Social Security Administration for years beyond 2000

YEARS
EMPLOYER &
EMPLOYEE TAX RATE
SELF-EMPLOYED
TAX RATE
MAXIMUM EARNINGS
TAXED ANNUALLY
(percent)
(percent)
(cap)
1937-49
1.00
=
$ 3,000
1950
1.50
=
3,000
1951-53
1.50
2.25
3,600
1954
2.00
3.00
3,600
1955-56
2.00
3.00
4,200
1957-58
2.25
3.375
4,200
1959
2.50
3.75
4,800
1960-61
3.00
4.50
4,800
1962
3.125
4.70
4,800
1963-65
3.625
5.40
4,800
1966
4.20
6.15
6,600
1967
4.40
6.40
6,600
1968
4.40
6.40
7,800
1969-70
4.80
6.90
7,800
1971
5.20
7.50
7,800
1972
5.20
7.50
9,000
1973
5.85
8.00
10,000
1974
5.85
7.90
13,200
1975
5.85
7.90
14,100
1976
5.85
7.90
15,300
1977
5.85
7.90
16,500
1978
6.05
8.10
17,700
1979
6.13
8.10
22,900
1980
6.13
8.10
25,900
1981
6.65
9.30
29,700
1982
6.70
9.35
32,400
1983
6.70
9.35
35,700
1984
6.70
11.30
37,800
1985
7.05
11.80
39,600
1986
7.15
12.30
42,000
1987
7.15
12.30
43,800
1988
7.51
13.02
45,000
1989
7.51
13.02
48,000
1990
7.65
15.30
51,300
1991
7.65
15.30
53,400
1992
7.65
15.30
55,500
1993
7.65
15.30
57,600
1994
7.65
15.30
60,600
1995
7.65
15.30
61,200
1996
7.65
15.30
62,700
1997
7.65
15.30
65,400
1998
7.65
15.30
68,400
1999
7.65
15.30
72,600
2000
7.65
15.30
76,200
2001
7.65
15.30
80,400
2002
7.65
15.30
84,900
2003
7.65
15.30
87,000
2004
7.65
15.30
87,900
2005
7.65
15.30
90,000
2006
7.65
15.30
94,000
  • Disability Insurance was added in the fifties.
  • Medicare was added in the sixties during the Johnson administration.
  • Notice that taxing the "Self Employed" didn't begin until 1951 and the self employed did not catch up with employer/employee combined rates until 1990.
  • The increase in the age of full retirement from 65 to 67 is a new tax increase variable that raises the age of retirement two months every year until it is in full effect in 2027.
  • President Bush , the man who swears he will not raise payroll taxes, has already raised them five years in a row by increasing the "cap" on Maximum Earnings. This is plainly evident in the table above and it happened while the retirement portion of Social Security was producing surpluses from $71 billion to $98.7 billion for the government to enjoy.
  • There is also a lot of talk about increasing the "cap" much further even eliminating it entirely which would produce a great deal of additional loot for the Beltway Bandits.