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Social Security's Payroll Tax Rate Could Increase. Here's Why I'd Rather That Happen Sooner Rather Than Later.

I don't love paying taxes any more than you do, but in this case, a tax increase now is the lesser of two evils.

Social Security's Payroll Tax Rate Could Increase. Here's Why I'd Rather That Happen Sooner Rather Than Later.

Published July 17, 2026 · Category: Finance

Overview

Currently, you pay 6.2% of your income into Social Security each year before that money ever makes it to your bank account. That's thousands of dollars per year. If you're self-employed like me, then you pay twice as much -- the full 12.4% -- since you don't have an employer to split the burden with you.

Most people would say that's more than enough money to lose to a program with an uncertain long-term value. But a tax increase is almost certainly in the cards within the next few years, and I, for one, believe it can't come fast enough. That's not as ridiculous as it sounds when you look at the math.

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Originally published at www.fool.com.

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