A comparison of social security taxes and Federal income taxes.

In recent years, with the implementation of the tax rate increases and ad hoc earnings base increases included in the 1977 Amendments to the Social Security Act, many observers have noted that social security taxes (for the old-age and survivors insurance (OASI), disability insurance (DI), and hospital insurance (HI) programs combined) now exceed Federal income taxes for many families. The question has been raised about whether this is a new phenomenon. This note examines that question by comparing the social security taxes and Federal income taxes for single and married workers (without additional dependents) at three wage levels for selected years from 1937, the first year of social security taxes, through 1980.