No. of Recommendations: 2
Social Security original intent was to be old age insurance. From day one, it was paying some people more than they put in. Initial retirement benefits were low, lower than old age welfare benefits.

The thing that makes Social Security look like a retirement plan is that the benefits received are loosely based on the amount put in. It is really based on the numbers of years worked and amount from the highest three years. And it is capped at a certain amount. Describing it as a retirement account with the revolving funds is a bad idea.

Personally, I feel that social programs should be paid through income tax. That is because a fixed rate tax with a cap is regressive. The poor pay proportionally more of their income to Social Security. If it is going to be paid through payroll taxes, then the cap should be removed and all workers taxed equally.

- Ian
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