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Originally Posted by SouthJerseyGirl
Perhaps Medicare transfers some wealth to lower income people BUT Social Security is a different story. There is a CAP on how much a high earner pays into the program. Earners over the limit are not subject to withholding. So dollar for dollar, lower income earners pay a higher percentage of their pay into the program.
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It's true that there is a cap on the tax, but there is also a cap on the benefit you can receive. But, overall, the monthly benefit people receive is heavily weighted to benefit lower income workers. A person who pays in the maximum amount of SS tax during their working years, will never receive as much in benefits as they paid in contributions. But, many lower income workers will receive a lot more in benefits than they paid in contributions while working. It is not a straight line proration of benefits vs contributions. That is the way the system works.