Social Security

Do the wealthy receive a larger Social Security benefit

Of course, up to a point higher earnings mean a higher benefit all other factors being equal.

However, it’s not all that simple. For example:

Some politicians want higher income Americans to pay their fair share when it comes to Social Security. The fact is they do, and more.

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11 replies »

  1. An executive with 2 million per year income, should not get any Social Security benefit.
    He has made it, the American dream. We all pay taxes every day and see very little benefit from those taxes. I continue to pay property taxes, that pay for schools and I have not had any children in school since 2009. People who have no children, pay taxes that fund schools.

    The Social Security system was sold as a way to help the poor, during retirement, in 1935. But it is the largest wealth transfer to the middle class and upper middle class in retirement from taxes taken from lower wage workers, which there is millions more in the workforce. Many middle class and upper middle class retirees could get by without any Social Security benefit at all.

    No one has paid anything close in SS taxes to equal the SS benefit that they will receive in retirement. SS is a welfare system that pays the lucky rich worker way more than the lower income worker on a per month basis.

    I am sure in the future there will be a means test for Social Security benefits and many with retirement income above $75,000 per year will not receive any Social Security benefits, unless Congress funds the system correctly to pay all promised benefits.

    “Social Security is a combination of a bad tax system with a bad way of distributing welfare.” -Milton Friedman

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    • It was not supposed to be welfare at all. The fact is it pays the better off worker more because they pay more in taxes. The SS benefit formula favors the lower income person. Little benefit from taxes? Better look around. Of course, people who have no children pay taxes for schools. Who paid for your children? Other people who then had no children.

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      • Everything I have ever read about SS and the reason for the legislation, was to provide a basic income in retirement so workers would not live in poverty, I call that a welfare system.
        In many cases it does not meet that goal. My mother who worked from age 18 to 65 in low paying jobs, gets $770 per month, she also gets $94 per month in food stamps. Her benefit is only 29% of the maximum monthly SS benefit. Lower income workers should get even higher benefits, because they have been the workforce that made companies billions, off their labor.
        So you think a CEO who made millions should be able to get SS benefits. That is what the system has become, a large income redistribution to many of the rich who do not need the money to meet basic needs. If benefits have to be cut in the future, poorer workers will be impacted much more than the upper middle class and rich CEOs. I would like to see a change in the benefit formula, so in the future everyone gets the same amount in their monthly check from SS. Maybe you should listen to Melton Friedman on youtube to gain a different perspective on Social Security and who benefits the most from the program.

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      • SS was intended to be a pay as you go system. Not welfare where some pay and others who do not pay collect. If a person works all their life at a low paying job, of course they are going to be no better or worse off in retirement. How could it be otherwise? There is no reason at all to cut benefits in the future. Minor changes enacted today can fix the program to keep it going.

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      • I agree that Social Security is broken and abused from the the original intentions. It is not my fault that I maxed out on paying my Social Security taxes 23 times in my working career and sometimes that was as low as $53k in earnings. But as a percentage of benefits to what I paid in, I will get a lower percentage compared to what your mother is receiving and to what she paid into the fund. I have no problem with her getting more of a benefit. It is true that I’ll be getting the max benefit payout but it will be a lower percentage compare to my earnings that were taxed. Because of my max benefit when I decide to finally start collecting Social Security, I will never be able to qualify for food stamps so I also lose that welfare benefit too. I was not $2 million CEO, but a shift worker.

        To me, paying into Social Security, a program that is supposed to benefit me directly and all these years with questions about whether or not it will be around to collect 9 years from now is still troubling. However to say that I must pay into this fund and not be allowed to use it is like paying fuel taxes and told that you cannot drive on the roads because you are too rich since you own a car. Part of the premise was that workers pay into the fund to use the fund, that is why you must qualify to collect. I had no idea that 40 years ago, that I would ever max out the payroll deductions, in fact it took me 14 years to do for the first time but I had to make some career changes along the way to do it.

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    • I for one believe that those that are millionaires and so forth..should not get Social Security..they surely dont need it..and those that make minimum wage and so forth..should get more..in SS..its bad enuf thatthey take a premium from the SS check for Medicare..so if those that are super rich dont get SS..then that money can be filtered back into the system and given more to those that are not super rich

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      • So you have no problem turning SS into a welfare program? Not sure how you define millionaire or super rich. If someone has saved and invested all their life and has $1.5 million in retirement savings are they millionaires?

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