A tiny increase in Social Security benefits for those with the lowest incomes can result in a quite significant transfer of income from the upper-income brackets to the lower.

Question

Quizplus · Accepted Answer

This is true because Social Security benefits are funded through a progressive tax system, meaning that those with higher incomes pay more into Social Security. Therefore, a tiny increase in benefits for those with the lowest incomes can result in a greater proportion of benefits being paid out to those with lower incomes, which can result in a transfer of income from the upper-income brackets to the lower.

A Tiny Increase in Social Security Benefits for Those with the Lowest