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The True Meaning of Social Security as an Earned Benefit
The term “entitlement” is continually thrown around to describe the financial return to workers and dependents when their entry into Social Security beneficiary status occurs. Unfortunately, “entitlement” has a connotation in the popular world that tends to diminish the fact that Social Security is a benefit that has been earned through workforce participation, and thereby through payment on the ubiquitous payroll tax (FICA tax as workers know it from their pay stubs). In a post on dallasnews.com, noted Social Security commentator Tom Margenau provides a real-life example of how this principle of an earned benefit plays out in real life, in this case with a self-employed worker who elects to avoid paying the dreaded payroll tax. Check out Margenau’s post here, and keep this example in mind the next time you encounter the term “entitlement” in the context of Social Security. Yes, it’s technically a correct term…just not realistic in today’s vernacular.