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[–] 1 point 1 month ago (2 children)

But social security isn't supposed to be a retirement plan. There'snot supposed to be a "return" on individualinvestment. It's meant to be a social safety net. Therefore it's fine for rich people to get less out of it.

It's also why the retirement age when it was instituted was 2 years above the average American lifespan. It was only meant to cover retirees who had lived longer than expected that they didn't want dying in the street.

But our lifespans got longer, so the number of people collecting social security as a retirement plan skyrocketed.

And the solution for the time being is simple: remove the $184,000 cap.

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  • [–] 1 point 1 month ago (2 children)

    As long as the withdraw rate is based on contribution rate it doesn't really matter what the cap is, because you'd be increasing withdrawal along with contributions. Social security income for someone who was making $185k/yr will be far more than enough to keep them out of poverty, which is the goal of social security. It's not meant to be people's only retirement account, it's a safety net.

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  • [–] 1 point 1 month ago (1 child)

    Having rich people pay into a system and then die is just beneficial. Even if their withdrawal rates are based on contributions. They will leave money behind or they with be neutral.

    Someone making $36k a year pays $4,464 dollars for SS.

    12.4% is a good retirement fund.

    So government takes what could be your good retirement fund so you can save another 12.4%?

    If someone really could save 24.8% they would have a great retirement. Yet the retirement for someone making $36K a year is looking grim.

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  • [–] 1 point 1 month ago

    A unskilled laborer makes about $18 or $36k a year.

    They have to pay 12.4% to social security.

    36k×.124=4,464

    $4,464

    Income Tax

    $36k-12,400=23,600

    12,400×.1=$1,240

    23,600×.12=$2,832

    $1,240+$2,832=$4072

    $4072

    $4,464+$4072=$8,536

    These unskilled laborers have to pay nearly a quarter of their pay in SS tax and Income Tax.

    $8,536/$1,000,000=.0085

    That's less than 1% to them.

    Yes the rich do not need safety nets but they should help build them

    If you were making a $1m salary. You could give up less than a precent of that and make one unskilled laborer's life 25% better.

    It's crazy how much $8,536 more would help someone making $36,000

    Yet the system is designed so it takes your $8,536 selling you a safety net

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