Social Security is fueling income inequality

There’s a reason why Social Security has long been called the “third rail of American politics”. For many seniors who have nothing else the thought of no Social Security is terrifying. Still others, those who are better off, often argue that “they paid into” the program and as such they are only getting their own money back.

The truth is that Social Security is paid for by younger people via payroll taxes. There is no vast investment pool from which current Social Security recipients draw. It is pay as you go. These taxes penalize those trying get started in life. For the self employed payroll taxes are particularly burdensome.