By Jeff Anderson, CFA
Social Security Benefits Increase 5.9% for 2022
American retirees will see the largest increase in social security benefits in over 40 years. Next year’s cost of living adjustment (“COLA”) reflects the recent rise in inflation. The increase amounts to $92 per month, on average, bringing the average monthly check to $1,657.
For American workers, social security taxes will be applied to earnings up to $147,000 next year vs $142,800 this year, a 2.9% increase.
Source- WSJ Social Security Cola Increase 2022
How the US Government Earns and Spends
For those of us curious, and sometimes frustrated, with the level of government spending, the Wall St. Journal put out a piece on Revenues and expenditures at the Federal, state, and local levels. Steve Ballmer, former CEO of Microsoft, and current owner of the NBA’s LA Clippers franchise started USAFacts to better understand government by the numbers.
The numbers provided are for 2018, but they are a good reflection of today’s revenue and expenditure categories, percentage-wise.
37% of revenues came from individual income taxes; 21% from payroll taxes, 12% from sales and excise taxes, 10% from property taxes, and 5% from corporate income taxes. An additional 12% came from earnings on investments, federal reserve earnings, and other non-tax revenue. The remaining 3% came from an estate and gift taxes, licenses, customs and duties, and others.
As for expenditures, see the graphic below.
Source- WSJ Social Security Cola Increase 2022
The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index.*******
