|Medicare costs to offset Social Security hike|
(CBS News, Oct 19, 2011)
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Thursday, October 20, 2011
Social Security Increase in Benefits
Medicare is expected to announce the 2012 Part B premiums early next week. The expected premium will be $106.60 per month; which will lower the paid premiums for about a quarter of those enrolled in Medicare Part B, but increase the premiums for many others.
According to the article I read (here), the amount of wages that will be subject to Social Security payroll taxes will increase from the first $106,800 in wages to the first $110,000. (I think that all of one's income should be subject to taxes, but whatever). Currently, workers pay 6.2% Social Security tax on wages (which is matched by employers), but the tax rate was reduced to 4.2% for 2011.