how is paying out social security based on earned income ok when the amount paid into it is not based on earned income? at that point why not just pay out equally like the prebate does? the prebate doesn't factor in earned income and thus gives low income earners a much higher refund rate than high income earners -- if it is ok for families then why not do the same for seniors?
there must be some other way.
The unstated assumption is that higher earners spent more...and paid more. I agree that it's not fair....but the sad fact of life is that unpalatable choices must be made. If we rely only on the productive sector to fund the benefits of the unproductive sector, we'll kill the productive sector.....like a leech bleeding it's host dry.
Please read the Heritage Foundation piece. It's really quite a good summary. Here's the link: http://www.heritage.org/Research/Budget/bg1897.cfm