Social Security mildly redistributes wealth from higher- to lower-income people.

Question

Quizplus · Accepted Answer

Social Security is funded by payroll taxes, which means higher-income workers pay more into the system than lower-income workers. As a result, the benefits received by lower-income individuals are a higher percentage of their lifetime earnings compared to those received by higher-income individuals. This makes Social Security a form of mild wealth redistribution from higher- to lower-income people.

Social Security Mildly Redistributes Wealth from Higher- to Lower-Income People