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