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Let's say you have 3 people: one who makes 50K, another 125K, and a third who makes 250K. Let's also assume SS tax of 7% on first $125K.

The first pays $3500 per year in SS tax, the second pays $8750, and the third $8750. But each one gets the same SS benefit (assuming same number of working quarters and lifespan).

You are right about tax rates, but those rates don't affect the benefit.

The article makes the point that lifespans are not equal, which tilts the SS program in the regressive direction. But (unless I misread the numbers), SS is still a progressive system overall.




Someone earning $50k does not get the same annual SS benefit as someone earning $125k. Unless you are adjusting for expected lifespan?


You're right, though it does not appear to be linear.

I could swear that it didn't work that way before -- did somethibg change?


I'm not aware of any previous model, although I've only been paying attention to Social Security for a couple years.




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