Social Security is a welfare system because:

Question

Quizplus · Accepted Answer

Social Security is considered a welfare system because it redistributes wealth from high-income retirees to low-income retirees through taxation of income. The tax rate is the same for all workers, regardless of income level. Only the first $137,700 of income is subject to Social Security taxes, which means that higher-income earners also pay Social Security taxes. However, the program is designed to provide more benefits to lower-income retirees while capping benefits for higher-income retirees. This redistribution of wealth is a key characteristic of a welfare system.

Social Security Is a Welfare System Because