Social Security redistributes wealth across income classes.

Question

Quizplus · Accepted Answer

Social Security is a redistributive program that transfers money from higher-income individuals to lower-income individuals. This is achieved through the progressive nature of the Social Security tax, which requires higher-income earners to pay a larger portion of their income into the program, and the formula used to calculate benefits, which provides greater financial support to lower-income beneficiaries.

Social Security Redistributes Wealth Across Income Classes