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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Amy J who wrote (220733)	2/25/2005 12:16:13 AM
From: Joe NYC	Respond to of 1572561

Amy, The way the system is skewed is this way (and I don't have actual figures, this is just an illustration): Suppose you are mid to high earner and you pay $10,000 in SS taxes per year. You retire, and SS calculates you benefit to be $25,000 per year. Now, suppose another person, who is a low wage earner, pays $1,000 per year in SS taxes (most refunded through Earned Income Tax Credit). If the formula was consistent, his SS benefit would be $2,500. But it is not. It may be $8,000. So there is some social engineering / income redistribution built into SS, that is not known to most people. Most people think that the benefits are proportional to taxes paid into SS. Joe