Social Security payroll tax hike backed by Congress
A $227 billion payroll tax increase over ten years to shore up Social Security clears Congress and heads to President Carter. Senate 56-21, House 189-163. Tax rises affect 107 million workers starting 1979, with higher rates for high earners and steady employer matching. The measure aims to stabilize benefits and retirement thresholds through 1987 and beyond.
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Compromise bill raises payroll taxes on workers
The proposal increases Social Security tax burden on employees while keeping the 50 50 split with employers. Under current law workers pay 5.85 percent on the first 16500 earned, capping at 965 dollars.
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