Republican voters feel their taxes pay for "freeloaders"

[exboyfil]

60. That is how social insurance works

and that fact probably only applies to the lowest earners (if even then).

Also you have to adjust contributions by the long term Treasury yield on bonds (the investment vehicle for SS). Those contributions over the years have allowed the SS Trust Fund to grow to nearly $3T.

The workers making $70K to $127K (current year) or its equivalent are what keeps SS afloat. They do more than their share (especially families with two earners making $118.5K). You got to think those folks would be telling the high earners to grab a shovel and help out (lift the cap).

SS is a means tested program in a sense. Here is the formula for calculating benefits.

The highest 35 years salary adjusted for inflation is averaged. Using the 2016 table

The first worker at annual earnings of $10,620.

At 65 (or 67) under SS this individual would get $9558/yr. This individual would have paid $24,161 into the system. His employer would have paid $24,161. How the employer contribution would have been split in an open market for the labor is another question. Some of that $24,161 would have definitely come from the employee's share.

Payback after 2.5 years. Note there is a minimum floor on payment even without contribution of $8,830/yr through SSI. The fact that the couples amount is lower than 2X this is an abomination.

Another earner at $64,032.


At 65 (or 67) under SS this individual would get $26,650/yr after paying in $145,673 over 35 years.
Payback after 5.5 years.

A final earner at $118,500

At 65 (or 67) under SS this individual would get $34,820 after paying in $269,588. Payback after 7.7 years.

Here is a link on how to calculate benefits. There are three levels at 90%, 32%, 15%. This is why I propose a fourth level of 5% for all income over the $118,500. You still get something for those contributions to the system, but between the smaller percentage and the tax code on benefits over a certain amount of income - a good chunk of the lifted cap amount goes to the system.


https://www.ssa.gov/pubs/EN-05-10070.pdf