FICA and home prices (Public Board)
I asked AI: "Are social security payments funded by recipient fica taxes only?"
No. Social Security operates on a pay-as-you-go system, meaning taxes collected from current workers are immediately used to pay benefits to current retirees and other beneficiaries. While FICA payroll taxes are the primary revenue source, payments are also funded by taxing the benefits of higher-income recipients and the interest earned on accumulated trust fund reserves
(from Fidelity)
Therefore the lion's share of Social Security payments are paid with current wage earner's taxes.
Therefore, ENTITLEMENT. My payments are funded on the back of today's wage earners. Which I have always accepted. The government plans on continual inflation to fund things.
Then: "Does the recipient's past fica taxes plus his medicare deduction from social security entirely fund current medical benefits?"
No. A recipient’s past FICA taxes and Medicare deductions do not entirely fund their current medical benefits. Medicare operates primarily as a pay-as-you-go system. The taxes paid by today's active workforce pay for the benefits of current retirees.Furthermore, FICA taxes and Social Security deductions are not the only sources of funding for the program. The broader Medicare Financial Status involves several other funding streams:General Federal Revenues: General tax revenue (income taxes and other federal funds) covers a massive portion of Medicare costs—typically around 40-75% depending on the specific part of the program.Beneficiary Premiums: Enrollees pay monthly premiums (like for Medicare Part B and Part D) which cover a significant share of outpatient and prescription drug costs.Social Security Benefit Taxes: A portion of the income taxes that high-earning seniors pay on their Social Security benefits is directed into the Medicare trust funds.Interest & Other Sources: The Medicare trust funds also earn interest on investments and collect taxes from high-earning individuals.
Jo, this stuff is mostly ENTITLEMENT. You're wrong, it's not all earned. You and I BARELY paid for most of what we draw today, and what we draw today wouldn't be meaningful without subsidies.
Others are helping pay our way. JUST. LIKE. Welfare.
If I received what I paid myself into FICA over the years as an investment stream it would be a few hundred a month, tops.
Home prices I agree. We are in the same boat. The $ that Zillow reports on our house is purely theoretical because we would have to replace it with something.
But most people feel financially more well off when their home equity rises. And Trump wants inflation. He's quoted that way, and he won't fix it.
