Let’s try one more time, you and I did not pay for our Social Security

No, you didn’t pay for your Social Security. Here’s why.

  • The Social Security taxes you paid are unrelated to the benefits you collect.
    • For example, two workers with identical earnings and identical taxes paid can receive substantially different benefits based on marital status.
  • The earnings used to calculated your benefits are not your actual average earnings, they are adjusted for inflation.
  • Taxes collected prior to 2010 were more than enough to pay benefits and the excess was invested in US Treasury bonds.
  • Since 2010 all incoming taxes have been used to pay current retiree benefits.
  • Congress can and has increased or decreased future benefits unrelated to tax rates.
  • Self employed individuals pay twice the amount in taxes for the same benefits
  • If your taxes alone were related to your benefits, your benefits would stop when that taxes your and you employer paid were exhausted.

3 comments

  1. Anyway you look at it for 37 years my company and I paid weekly into the social security system. That money helps pay Social Security benefits to retirees.

    Like

    1. No argument there, “helps” is a good word because now trust fund interest is needed to pay benefits and shortly the trust will start redeeming its bonds until they are gone around 2034 +-

      Like

      1. It is not my fault that the government did not tax me or my employer enough to pay for the benefits that I and my wife now receive. I will have everything that was paid in SS taxes back in just 66 months. I adjusted everything for inflation and $86,500 was paid in for the 27 years I had taxable income, many years I earned less than $12,000. If my wife and I live to 85 we will receive a total of $450,000 in SS benefits. And people continue to tell me that Social Security is a bad deal. My numbers prove them wrong.

        Like

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