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Benefits Received with Social

            Benefits Received with Social Security Taxes.
             The purpose of this journal is to look at how (OASDI) Old Age survivors Disability Insurance is distributed in relation to the amount of taxes paid versus the benefits received. This journal will look at a brief history of the program and the three main factors that determine the amount of taxes an individual pays versus how much they receive in benefits according to various ethnic groups and levels of earning. .
             In order to understand the Social Security program we will first take a brief look at its history. The Social Security program was established to provide retirement for old people. Later, in 1939 the Social Security amendment added two new types of benefits: Benefits paid to dependants of the retired worker and survivor benefits paid to the family after the death of the covered person. Again, in 1956 the Social Security Act was amended to provide Social Security Disability Insurance.
             Three factors that directly affect the taxes paid and benefits received by an individual, according the (GAO) General Accounting Office Report GAO-03-87, are lifetime contributions, occurrences of disability, and mortality. The benefits program is designed to replace a larger portion of covered benefits for low wage earners than for high income earners, thus, lifetime earnings plays an important role. Also, people who are disabled receive benefits earlier and pay taxes for fewer years. Additionally, the mortality rate determines how long a person will pay taxes and receive benefits.
             In the Report it is determined that Blacks and Hispanics in the aggregate are more likely to receive (DI) Disability Insurance earlier and have lower lifetime earnings. However, because of the survivors benefit they will likely receive higher benefits relative to taxes paid than whites. Just the same, whites with low earnings and high disability also receive a higher ratio of benefits proportional to taxes than whites with higher incomes.