Comment on It's rigged
VinegarChunks@lemmus.org 2 weeks agoSocial Securiry benefits are paid out based in how much you earned during your working years.
These benefits cap out at a certain limit. Accordingly, the social security taxes also cap out at a certain limit. Beyond that income you do ‘t get any higher Social Security benefits and you don’t pay any higher Social Security taxes.
This is because Social Security is not designed to be a progressive tax like the income tax is.
Our tax system overall should be more progressive. Maybe social security should be part of that. But it was never designed to do this.
AA5B@lemmy.world 2 weeks ago
Tax brackets are the fundamental way that income tax is used regressive: the higher your income, the higher percentage you pay on that (marginal) income
In addition to “income” shenanigans available to the wealthy, the highest tax bracket is at $750,000 (couples filing jointly). While that’s certainly a lot of income, the percentage never goes higher. Someone earning that pays the same percentage on marginal income as a ten millionaire or a hundred millionaire or a billionaire. It stops progressing
bss03@infosec.pub 2 weeks ago
We need to bring back the 92% (marginal) tax bracket.