What are social security taxes primarily used for?

Social Security taxes are primarily collected to fund benefits for eligible workers and their families through the Federal Insurance Contributions Act (FICA). This ensures that individuals who have contributed to the Social Security system during their working years are able to receive financial support during retirement, in the event of disability, or for their survivors in the case of death.

These taxes are specifically earmarked for Social Security and Medicare programs, which play a critical role in providing a safety net for millions of Americans. The funds generated from Social Security taxes are not used for general government initiatives or to subsidize private sector operations, like hiring incentives for businesses, nor are they allocated to support educational institutions. Instead, the primary purpose is to guarantee economic security for individuals and their families who rely on these benefits.