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That might be "modest" in GH's world, but I do not consider it a "modest tip".

It is modest, because lower wage earners have lower life expectancies than high wager earners. Therefore, even though they get a higher relative payout, you are looking only at "each month", versus the total payout over their (average) lifetime.

http://www.cbo.gov/ftpdocs/91xx/doc9104/LifeExpectancy_Brief...

The latter person paid almost twice as much SS tax (1.94x or 94% more) but receives only 33.9% more benefits (647.10/1908.05). 94/33.9 is a 2.77x tip.

Now multiply it by the total (expected) payout over their respectively different lifetimes and see what you get.

I am not saying it's "exactly the same." Nothing could ever be "exactly the same." I am saying that the differences are modest, overall, which is how actuarially sound systems work.
 
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