Two people that I know very well are in the following situation (I am guessing on the details, but know I am close):
- Person one was working at a big time Wall Street firm that got tangled up in the subprime mess. He was making over $300k per year. He was laid off last fall at the onset of the crisis … and was given a full year of compensation as severence (including health benefits). Yet he received unemployment benefits for 26 weeks financed out of UI premiums from workers making far less in 8 years than he made in one.
- Person two worked hard his whole life and retired. And yes, he paid well over $150,000 into the OASDI system. But he has an estimated net worth of $3-$4 million and much of it is highly liquid. His family receives a check for $2600 per month in social security benefits. These funds are financed by the payroll tax, while is levied on every single American worker regardless of how much money they make. The rate is flat (15.3%) and capped at around 100%, so it is a regressive tax. Yes, the guy who changes your oil is paying for the retirement of a millionaire.
Try reforming THAT system. Have a lovely day.
