In fact, Social Insecurity version 2.0, as announced by the President at his press conference, would reduce retirement incomes much more for the middle class than for the rich, simply because the rich don’t rely much on Social Security in the first place. Middle-class retirees in 2075 (people earning the equivalent of $35,000-$100,000) would have their retirement income cut by 10-13%. For the people who got the most out of the tax cuts which blew the Social Security surplus, the hit would be much smaller, down to 1% at the million-dollar-a-year level.
Yes, it’s true that the bottom of the income distribution (among those with enough time in the labor force to qualify for Social Security) would fare better than the middle class. But since when is hammering the middle class while doing nothing for the poor in order to pay for tax cuts for the rich “Robin Hood” behavior?Powered by Sidelines