Essay: Criticism Subjected to Social Security Funds

17 Oct

Essay: Criticism Subjected to Social Security Funds

Sample Essay

There have been substantial criticisms over the program of social security in the states making efforts to enact such programs. Social security is likened to a mechanism which redistributes wealth to the wealthy from the poor. Here, in the program, workers are entitled to pay up to 12.4 percent and an additional 6.2 percent employer’s donation of their wages below the Social Security Wage base which was set at $102,000 in the year 2008.

This suggest that there will be no taxation on the excess of $102, 000 which then means that those who earn big will pay a lower percentage of their total income and the low earners will have to pay very high percentage on their small wages (Queisser, 1997). This reasoning of social security is absolutely not viable. This situation has led to a general perception that payroll taxes are absolutely regressive. It has also been argued that the wealthier individuals have a longer life expectancy and will definitely expect to receive better benefits for a very long time than when the poor earners are put on the same examination. For instance, the program has greatly discriminated the poor tax payer and favored the wealthier individuals who have higher life expectancy. A poor individual who dies before reaching the age of 62 will not receive any retirement benefits with the longer period of paying social security taxes notwithstanding. Contrary, a rich individual dying at the age 100 is guaranteed his payment which is actually more than what he initially paid to the system (Social Security Online, n.d).

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