Social Security is a Tax
How much do you pay into Social Security? What return on investment might you receive under the Social Security program?
| Payment Into Social Security: | Percent | |
| Old Age, Survivors and Disability Insurance Employee | 6.2% | |
| Old Age, Survivors and Disability Insurance Employer | 6.2% | |
| Medicare Employee | 1.45% | |
| Medicare Employer | 1.45% | |
| Total | 15.3% | |
Good News! There is a Social Security wage base limit. Neither You, nor your employer have to pay Old Age, Survivors and Disability Insurance on wages over the wage base limit. In 2025 the wage base limit is $176,100
Let's do some analysis on what returns we can expect from Social Security. If a person earned the average American wage from 1985 until 2030. And we assumed the Consumer Price Index(CPI) and the average wage continued to increase at 2.5% per year. The following Table of payments and returns would result.
The far right columns assume a rate of return of -.69% and 10% as labeled. These rates are added to the CPI to get an annual rate of return. If the CPI was 2.5% then the columns compute a return of 1.81% and 12.5% for that year respectively.
At the bottom you will see the -.69% column break even. This shows that for this example, Social Security doesn't keep up with inflation. In real terms the average American is losing money on their Social Security Investment.
You will also notice that the 10% column ends with over $30 Million in value. That means the Social Security investor is loosing $30 Million in opportunity cost assuming they can find an investment earning a real return of 10%. Social Security is an oppressive Tax.
Rather than worrying about Government taking away your Social Security, you should be trying to Opt Out of Social Security. Currently there is no option to opt out, but Capital Gains are not included in wages and do not require you to pay Social Security. Your mission should be to Maximize your Investments so you can start earning capital gains as soon as possible.
| Year | Age | Avg Wage | Payments In | Payments Received | CPI | -0.69% | 10% |
| 1985 | 22 | $16,822.51 | $2,573.85 | $0.00 | 3.56% | $2,573.85 | $2,573.85 |
| 1986 | 23 | $17,321.78 | $2,650.23 | $0.00 | 1.86% | $5,254.16 | $5,529.31 |
| 1987 | 24 | $18,426.51 | $2,819.26 | $0.00 | 3.65% | $8,228.93 | $9,103.30 |
| 1988 | 25 | $19,334.04 | $2,958.11 | $0.00 | 4.14% | $11,470.71 | $13,348.37 |
| 1989 | 26 | $20,099.55 | $3,075.23 | $0.00 | 4.82% | $15,019.48 | $18,401.59 |
| 1990 | 27 | $21,027.98 | $3,217.28 | $0.00 | 5.40% | $18,944.67 | $24,453.31 |
| 1991 | 28 | $21,811.60 | $3,337.18 | $0.00 | 4.21% | $22,948.34 | $31,264.85 |
| 1992 | 29 | $22,935.42 | $3,509.12 | $0.00 | 3.01% | $26,989.93 | $38,841.61 |
| 1993 | 30 | $23,132.67 | $3,539.30 | $0.00 | 2.99% | $31,150.96 | $47,427.83 |
| 1994 | 31 | $23,753.53 | $3,634.29 | $0.00 | 2.56% | $35,367.95 | $57,019.32 |
| 1995 | 32 | $24,705.66 | $3,779.97 | $0.00 | 2.83% | $39,906.21 | $68,117.15 |
| 1996 | 33 | $25,913.90 | $3,964.83 | $0.00 | 2.95% | $44,774.02 | $80,905.03 |
| 1997 | 34 | $27,426.00 | $4,196.18 | $0.00 | 2.29% | $49,688.58 | $95,048.04 |
| 1998 | 35 | $28,861.44 | $4,415.80 | $0.00 | 1.56% | $54,535.49 | $110,449.14 |
| 1999 | 36 | $30,469.84 | $4,661.89 | $0.00 | 2.21% | $60,025.55 | $128,595.32 |
| 2000 | 37 | $32,154.82 | $4,919.69 | $0.00 | 3.36% | $66,548.73 | $150,697.07 |
| 2001 | 38 | $32,921.92 | $5,037.05 | $0.00 | 2.85% | $73,020.26 | $175,091.95 |
| 2002 | 39 | $33,252.09 | $5,087.57 | $0.00 | 1.58% | $78,758.46 | $200,456.97 |
| 2003 | 40 | $34,064.95 | $5,211.94 | $0.00 | 2.28% | $85,221.91 | $230,283.11 |
| 2004 | 41 | $35,648.55 | $5,454.23 | $0.00 | 2.66% | $92,357.60 | $264,898.19 |
| 2005 | 42 | $36,952.94 | $5,653.80 | $0.00 | 3.39% | $100,503.24 | $306,016.66 |
| 2006 | 43 | $38,651.41 | $5,913.67 | $0.00 | 3.23% | $108,965.48 | $352,403.50 |
| 2007 | 44 | $40,405.48 | $6,182.04 | $0.00 | 2.83% | $117,476.53 | $403,789.68 |
| 2008 | 45 | $41,334.97 | $6,324.25 | $0.00 | 3.86% | $127,523.77 | $466,075.71 |
| 2009 | 46 | $40,711.61 | $6,228.88 | $0.00 | -0.37% | $132,398.89 | $517,180.34 |
| 2010 | 47 | $41,673.83 | $6,376.10 | $0.00 | 1.68% | $140,083.52 | $583,954.43 |
| 2011 | 48 | $42,979.61 | $6,575.88 | $0.00 | 3.12% | $150,060.40 | $667,132.49 |
| 2012 | 49 | $44,321.67 | $6,781.22 | $0.00 | 2.09% | $158,942.19 | $754,568.81 |
| 2013 | 50 | $44,888.16 | $6,867.89 | $0.00 | 1.48% | $167,067.05 | $848,067.51 |
| 2014 | 51 | $46,481.52 | $7,111.67 | $0.00 | 1.59% | $175,678.96 | $953,453.10 |
| 2015 | 52 | $48,098.63 | $7,359.09 | $0.00 | 0.13% | $182,048.52 | $1,057,365.93 |
| 2016 | 53 | $48,642.15 | $7,442.25 | $0.00 | 1.27% | $190,539.05 | $1,183,929.16 |
| 2017 | 54 | $50,321.89 | $7,699.25 | $0.00 | 2.13% | $200,972.54 | $1,335,179.82 |
| 2018 | 55 | $52,464.52 | $8,027.07 | $0.00 | 2.45% | $212,532.66 | $1,509,409.81 |
| 2019 | 56 | $55,332.01 | $8,465.80 | $0.00 | 1.83% | $223,425.46 | $1,696,468.06 |
| 2020 | 57 | $57,442.30 | $8,788.67 | $0.00 | 1.21% | $233,381.21 | $1,895,470.81 |
| 2021 | 58 | $59,739.99 | $9,140.22 | $0.00 | 4.68% | $251,822.66 | $2,182,779.43 |
| 2022 | 59 | $62,129.59 | $9,505.83 | $0.00 | 8.01% | $279,762.76 | $2,585,411.16 |
| 2023 | 60 | $66,621.80 | $10,193.14 | $0.00 | 4.14% | $299,594.67 | $2,961,060.92 |
| 2024 | 61 | $68,620.45 | $10,498.93 | $0.00 | 2.79% | $316,383.98 | $3,350,268.56 |
| 2025 | 62 | $70,679.07 | $10,813.90 | $0.00 | 2.49% | $332,894.12 | $3,779,545.12 |
| 2026 | 63 | $72,799.44 | $11,138.31 | $0.00 | 2.49% | $350,031.89 | $4,262,832.21 |
| 2027 | 64 | $74,983.42 | $11,472.49 | $0.00 | 2.49% | $367,813.36 | $4,806,834.81 |
| 2028 | 65 | $77,232.93 | $11,816.65 | $0.00 | 2.52% | $386,363.79 | $5,420,503.67 |
| 2029 | 66 | $79,549.91 | $12,171.14 | $0.00 | 2.49% | $405,480.61 | $6,109,571.38 |
| 2030 | 67 | $81,936.41 | $12,536.27 | $29,088.00 | 2.51% | $396,316.72 | $6,857,448.94 |
| 2031 | 68 | - | $0.00 | $29,815.20 | 2.51% | $373,696.68 | $7,685,192.47 |
| 2032 | 69 | - | $0.00 | $30,560.58 | 2.50% | $349,892.48 | $8,615,126.13 |
| 2033 | 70 | - | $0.00 | $31,324.59 | 2.49% | $324,864.26 | $9,659,789.25 |
| 2034 | 71 | - | $0.00 | $32,107.71 | 2.51% | $298,655.29 | $10,835,710.93 |
| 2035 | 72 | - | $0.00 | $32,910.40 | 2.49% | $271,133.79 | $12,156,656.25 |
| 2036 | 73 | - | $0.00 | $33,733.16 | 2.51% | $242,326.29 | $13,643,318.73 |
| 2037 | 74 | - | $0.00 | $34,576.49 | 2.49% | $212,118.65 | $15,313,185.33 |
| 2038 | 75 | - | $0.00 | $35,440.90 | 2.50% | $180,520.78 | $17,192,158.64 |
| 2039 | 76 | - | $0.00 | $36,326.93 | 2.51% | $147,476.58 | $19,306,308.50 |
| 2040 | 77 | - | $0.00 | $37,235.10 | 2.49% | $112,897.80 | $21,680,659.46 |
| 2041 | 78 | - | $0.00 | $38,165.98 | 2.50% | $76,769.80 | $24,351,526.63 |
| 2042 | 79 | - | $0.00 | $39,120.13 | 2.50% | $39,037.19 | $27,355,708.51 |
| 2043 | 80 | - | $0.00 | $40,098.13 | 2.50% | -$355.16 | $30,734,513.84 |
Underground Capitalist is just one part of a private, member-driven, ecosystem of people and businesses who are dedicated to the founding principles of the United States of America – Capitalism, Individual Rights, Rule of Law, Scientific Thought and Christian Values.
