Robert Reich

The income cap on Social Security taxes is rigged for the rich.

A CEO earning $20 million a year pays Social Security taxes on ~1% of their income.

Meanwhile, a normal worker earning under the cap pays Social Security taxes on 100% of their income.

How does that make any sense?

https://youtu.be/GfZuB7XSFys

How the Super Rich Are Killing Social Security | Robert Reich

YouTube
Jun 27, 2023 at 1:09pmWeb
Show threadLuis_Fierro Jun 27, 2023

@rbreich

It makes sense because the CEO won’t receive millions in social security payments.

If you want more progressive taxation, have to go through income tax, create a wealth tax, or tax unrealized capital gains.

Seems #SCOTUS wants to preemptively ban the last two options.

Show threadNonya Bidniss 🥥🌴Jun 27, 2023
@Luis_Fierro @rbreich I wonder, how much, ballpark, would that CEO collect in social security payments then? I thought your benefit was calculated on your lifetime income. ?
Show threadLuis_Fierro Jun 30, 2023

@Nonya_Bidniss @rbreich

You don't have to wonder. Maximum retirement benefits are $3,627 at full retirement age (67). It’s $4,555 per month if retiring at age 70 and $2,572 if retiring at age 62.

It actually surprised me how low it was. It is about twice the maximum in #Ecuador, where income per capita is 1/12 of the U.S.

https://www.nerdwallet.com/article/investing/social-security/maximum-social-security-benefit

The Maximum Social Security Benefit in 2023 - NerdWallet

The maximum Social Security benefit in 2023 is $3,627 at full retirement age. It’s $4,555 per month if retiring at age 70 and $2,572 for retirement at age 62.

NerdWallet
Show threadLuis_Fierro Jun 30, 2023

@Nonya_Bidniss @rbreich

The maximum pension of the Ecuadorean social security system is $2,475 (with 40 or more years of contributions). This can be received at age 65.

https://www.iess.gob.ec/es/web/guest/jubilacion-ordinaria-vejez

Seguro de Pensiones - IESS

Show threadTracy HallJun 27, 2023

@Luis_Fierro @rbreich

"I don't drive the freeways in Florida. Why should MY tax money pay for freeways in Florida?"

Gee, golly, what a toughie... Maybe because your millions are ENTIRELY a benefit of the society you've chosen to be a part of?

Show threadLuis_Fierro Jun 28, 2023

@video_manager @rbreich

Sure, but then impose a higher income tax, a wealth tax or a unrealized capital gains tax (good luck with passing that through the House).

The social security contributions have to be aligned with the social security benefits you expect to receive. There is a cap on social security benefits (currently $4,555 if you retire at 70).

https://faq.ssa.gov/en-us/Topic/article/KA-01897

What is the maximum Social Security retirement benefit payable?  · FAQ | SSA

Show threadTracy HallJun 28, 2023

@Luis_Fierro @rbreich

You REALLY don't actually understand Social Security, do you? It is not now, nor ever was a "savings" program... It was ALWAYS and will always be a program where currently employed people support retirees, as part of a social compact that we will be supported as retirees.

You've bought into the lie.

Show threadDr Susi ArnottJun 27, 2023
@rbreich Presuming this refers to USA?
Show threadSilverKatJun 27, 2023
@rbreich Do you have a list of their companies we should all boycott? How shall we destroy these scumbags?
Show threadSFborn1940Jun 27, 2023
@rbreich "Rigged for the rich" properly describes our entire economic and legal systems.
Show threadVirginia YonkersJun 27, 2023
@rbreich Thank you for bringing this up. Especially as many of the late boomers, who were the generation that corps took away their pensions, now only have SS to live on. The largest group of homeless in CA according to a new report. Why? Can't afford housing.
Show threadBarbara MonacoJun 27, 2023
@rbreich Raise the cap. This is the best way to keep Social Security solvent forever.
Show threadJoey Gibson Jun 27, 2023
@Barbramon1 Yes! The cap is _obscenely_ low. While I enjoy the extra cash during the last quarter of the year, I can afford to keep paying in. So can those who make far more than I do.
Show threadrockycoloradanJun 27, 2023
@rbreich
So why doesn't the employer continue to contribute to the fund even if the employee has hit the cap?
Show threadmiket330Jun 27, 2023
@rbreich yet EVERYONE! in govt. Knows this bc their salary is in the exempt range, yet chose to ignore the obvious...instead of cut, cut, cut, tax the rich damn it! its it's ludicrous, they want all the benefits their position offers, yet do not want to contribute a fair share. Corporations enjoy the same exemptions, RECEIVE govt. Subsidies and pay little in tax WTF
Show thread4GrandJun 27, 2023
@rbreich it doesn’t make sense but those who enact this nonsense spout bullshit to make it work. Why? Because those affected the most by their nonsense continue to make excuses for them.
Show threaddjinnsourJun 27, 2023

@rbreich
During the Y2K craze I was able to make a ridiculous amount of money one year. I maxed out my SS, and received a letter explaining my projected benefits. It was evident I would never receive as much as I contributed. I asked a friend, an accountant who worked in government, about it and he explained it was designed to be an equal burden for everyone to make sure we didn't have millions of destitute senior citizens.

I asked why the burden wasn't shared by rich people.

Show threaddiagdaJun 27, 2023
@rbreich I agree
Show threadMacChoilighJun 28, 2023
@rbreich 💯 % correct.
Show threadtortiegertieJun 28, 2023
@rbreich time to extend the threshold
Show threadWolleysegapJun 28, 2023
@rbreich All true, and yes it is demonstrably wrong, but we can't afford a congressperson so probably it won't change any time soon
Show threadMallisqoJun 28, 2023
@rbreich how old is the cap? Does it go back to the 60s when we didnt have billionaires or even multi millionaires??
Show threadLarisaLJun 28, 2023
@rbreich makes no sense at all!