Monday, January 20, 2014

Social Security ROI by race

Here's an Urban Institute study on Social Security by race. (For those not familiar with the various think tanks, Urban "leans left".)

Hey, sorry, white people: you get a *really* low rate-of-return from SS.
And really sorry, "people of color": you get an even lower ROI.

These ROI are lower than I'm used to seeing-- and the authors don't seem to weigh in the "employer's share" of SS taxes either. Ouch!

Notice also that this ignores difference in income, within racial differences. We know that the working poor get an even-rawer deal from SS-- and can least afford to have the thousands of FICA dollars yanked out of their paychecks annually.

Something to think about-- the next time you hear Democratic politicians demagoguing on Social Security and the next time you realize that most politicians routinely ignore the immense burden of FICA taxes.



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