Social Security benefits many American citizens, but what about billionaires? Yes, they also have rights to apply for their corresponding Social Security benefits. Everybody can get access to the benefits provided by the American government, but there are specific requirements for everyone. Let’s see how this works.
Social Security system
Social Security is a program the American government initiated to benefit citizens who were in certain conditions, so they were able to obtain some help to make their life a bit easier when it comes to their basic needs. This program is aimed at Americans who are retired, disabled or if a family member has passed away.
However, it is not that easy for billionaires, not only must you have some of the conditions mentioned above, but you also have to have worked and pay taxes – Federal Insurance Contributions Act (FICA).
Can billionaires obtain Social Security benefits
Yes, but there are some certain requirements they must have. They must have contributed to Social Security with their work history by obtaining 40 work credits – which translates into 10 years working. The Earned Income Credit (EIC) is a tax for some people who have worked and have earned income under $66,819, this could reduce the amount of tax you owe and you could also be given a refund. Another work requirement is to have paid the payroll taxes from a job or your own business.
It is important to remember that it would only be considered contributions to the ones coming from a work activity. Billionaires who have obtained their fortune through inheritance or investments will not be considered contributions to Social Security, therefore, they will not have any benefit when they reach their retirement age.
Billionaires and taxes
People who have worked pay taxes just for the first $176,100 earned in a year, this is what is called the ‘taxable maximum’. If you exceed this amount you will not pay Social Security taxes, but you will pay other taxes related to health, for example. However, this is not done just for billionaires, this process will also be applied to average people if they are more than the amount of money required.
Some famous billionaires would only need days or even minutes to pay Social Security taxes as they overly exceed the taxable maximum. Some of them are: Elon Musk (worldwide known) would pay his taxes in less than a minute! Imagine how much of his fortune must be! Others like Tim Cook (Apple CEO) or Christopher Kempczinski (McDonald’s CEO) would both have their taxes paid by January.
What if taxable maximum didn’t exist?
The elimination of the taxable maximum has been in talks since billionaires would contribute more to the Social Security system and would have many benefits for citizens of the United States of America. For instance, In 10 years time $3.2 trillions would be collected and the Social Security system could become more sustainable.
So, being a billionaire is not a guarantee of obtaining benefits, only people who can prove they have a work history and pay their taxes have the opportunity to apply for Social Security benefits. However, if you are a billionaire who has worked you may receive the taxable maximum.
It is true these aids are the sustenance for many American families, so many citizens disagree on billionaires being able to get access to these benefits. Maybe some changes in the requirements, as in the taxable maximum, should be taken into account to start solving the Social Security financial problem. Whether you are a billionaire or not, what are your thoughts about this Social Security issue?