OK, let's call it the Investment into the People of the United States tax if it makes you feel better. What difference does it make or are you one of those that believe that you should be able to leave to your heirs the money you paid in if something happens to you? Or invest this money into the stock market so you can get a better return on your investment?Because it is a tax. It’s not an investment portfolio. The difference is substantial:
People have direct access to all funds in their investment portfolio. Most retirement accounts require a person to be 59.5 years before withdrawing money to avoid paying much higher taxes on those funds
But since SS is paid into the government and paid out by the government, it is much more like a tax. There is no guarantee people who are currently paying into the program will ever see a dime when they reach retirement age. Rather it’s a government program to assist elderly/disabled people. How is that any different than people contributing funds (tax) to help fund roads, food stamps, Medicare/Medicaid, or any other government program designed to assist people in need of certain services? All of these programs ensure a higher quality of life
Businesses have to pay 50% of their employee’s SS contribution. Businesses classified their portion as a payroll tax.
This is 100% a tax. And if people view it as a tax, they would then invest into their own retirement account more appropriately, thus becoming less reliant on government assistance
SS is not an investment, it is not a 401K program, it's a program set up to help those that have a disability, that are older age, those children that lost their parent. It's a program that allows people to enjoy their Golden Years without living in poverty. It also is one of the most important social contracts and programs the government has ever come up with, and needs to be enhanced and made safe into the future.