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Richard Rider

Social security “bend” tax brackets heavily subsidize low-income earners — updated for 2023

The poor and low-income folks of America receive many government subsidies. But here’s one subsidy that few people are aware of.

Social Security retirement checks are HEAVILY subsidized for low earners. Moreover, for those whose earned income (adjusted for inflation) averages above about $126,000 (called “AIME”), they get ZERO money back on their 6.2% SS payments (12.4% for the self-employed) on that “excess” income confiscation.

Essentially, those annually earning more than $126,000 up to $160,200 in 2023 will find that 100% of their SS payments (6.2% each, paid by both employer and employee) above $126,000 are to help subsidize the low wage earners who pay VERY little for their benefits. The high-income payers will get not one dime extra for these higher payments. This 2:40 minute videois a good summary of the SS program, though the numbers are not up to date. There are three tiers of payouts, based on one’s annual earnings (though the specific figures in the video are… Read More

Richard Rider

For most, SS is a surprisingly good deal — if we ignore the doomed nature of this Ponzi scheme

2021 figures – compiled by Richard Rider using OpenAI technology

Social Security calculations, including the “bend points”

At what level does your social security (SS) contributions no longer earn you more benefits? In 2021, that annual figure was $117,040.Any SS payments you and your employer paid on income above that amount (up to the $142,800 in 2021) will not earn you a penny more in social security benefits. But almost NO ONE knows about this rip-off of the upper middle class. Most people think that SS is a bad deal for the worker. But for most, SS is arguably a good to GREAT deal – IF you ignore the doomed nature of this Ponzi scheme. See below for details.

In the United States, there is no specific level at which Social Security contributions stop earning you additional benefits. Instead, the amount of benefits you receive is based on the amount of income you earned during your working years, and the age at which you start receiving benefits. But I’ve done the calculations for you.

Under the Social Security program, you earn credits based on the amount of… Read More