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View Diary: It's not 47% anymore (103 comments)

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  •  The 1% don't pay social security taxes (3+ / 0-)
    Recommended by:
    wintergreen8694, chujb, Cassandra77

    On most of their earnings. The have other "passes" written into the law to enable them to avoid taxes.

    Be ashamed to die until you have won some victory for humanity. Horace Mann (and btw, the bike in kayakbiker is a bicycle)

    by Kayakbiker on Fri Aug 30, 2013 at 04:52:38 AM PDT

    •  Social Security retirement benefits... (0+ / 0-)

      ...only go to those, and their spouses, who paid Social Security taxes and their benefits increase as their contributions increase.

      An able bodied person who never earned wages subject to Social Security tax gets no Social Security retirement benefits. (I know someone who did this because he was lazy - he mooched off his parents, mostly his mother who was receiving a government pension based on his father's employment prior to his early death, for the entire period that Social Security considers for benefit calculations - hence, this person will never receive a penny of Social Security retirement benefits).

      However, there's a twist. The "first dollar" a person pays in SS tax results in six times the retirement benefit of the "last dollar" put in before hitting the cap for those who hit the cap at least 35 years of the applicable years.

      Many, probably most, of the 1% have sufficient wage income to be contributing at the "1/6 benefit tier" most of their working career.

      Hardly a "pass" for the wealthy - they get much less in return for their Social Security taxes than lower income people do.

      Social Security is not primarily a welfare program -- which is one reason it remains popular. To decouple contributions from benefits would erode that popularity.

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