We all subsidize somebody – let’s look at Social Security

Fair share!

You have heard those words many times and they mean something different to everyone. Generally, we hear that some Americans, the “wealthy” are the ones not pay a fair share, but that’s political expediency, not fact.

Social Security is an excellent example of how many Americans are subsidized by others and may not even know it. For example:

singles subsidize couples,

childless subsidize families,

higher income earners subsidize low earners

divorced and remarried are subsidized by everyone

those with young children and collecting Social Security are subsidized

individuals married late in life are subsidized

individuals married and divorced and remarried are subsidized

Look at this this way, an individual worker paying payroll taxes subsidizes children, spouses, survivors, divorced spouses and the disabled who never paid a penny in taxes.

Two workers with identical earnings and working years may have earned a monthly benefit of $1500. While the never married worker collects $1500. The married worker or worker with children or divorced worker will collect $2250 or more (up to the family maximum). This will be true even if marriage occurs 12- months before retirement.

But hey, that’s why they call it insurance. There are many cases where you would not want to receive benefits for the things you are subsidizing.

One comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s