The twist is that the less you contribute, the higher your return.
What other taxes are paid back to you later, in rough approximation to the amount that you paid?
The payback is entirely a function of the contribution stream (amounts and time).
> In any case, why should it make a difference what happens to the money after you pay it?
Because money collected for specific services rendered isn't much like money collected for general public services.
For example, many cities do garbage collection. While that money is collected by govt, it isn't much like property or sales tax.
Suppose that I'm looking to live in one of two cities. One has govt garbage collection and will charge me $100/month and the other has a private franchise providing garbage collection, again for $100/month. Would you really claim that the first city has higher taxes?
SS isn't just the basic retirement stuff. Other payments are available which vary based on disability, personal resources, and location and status of residence.
Even the basic retirement stuff depends greatly on how long you live. If you die just as you retire, your inheritors don't get any of your SS benefits.
> Suppose that I'm looking to live in one of two cities. One has govt garbage collection and will charge me $100/month and the other has a private franchise providing garbage collection, again for $100/month. Would you really claim that the first city has higher taxes?
Yes, as long as the $100/month is not optional. Gas taxes go to build highways that the driver uses, is that then not a tax? Tons of taxes are earmarked for specific purposes.
I don't know about the rest of you, but I've actually had significant interaction with young unwed mothers.
Almost every one of them got pregnant intentionally. Yes, many will tell you a story at first, and "I couldn't afford it" does let them save face, which is pretty much all they've got left. But, after a while, it comes out that they knew exactly what they were doing.
So, why did they want to get pregnant?
A minor reason is that being a parent gets you some immediate respect.
However, the big reason is one of the saddest things I've ever heard.
"A baby has to love me."
> regressive taxation
The US doesn't have a regressive tax system. In fact, much of the volatility in tax revenues, which is killing CA, comes from being too progressive. (FWIW, EU countries tend to have a much flatter tax system.)
"progressive" = fraction of income going to taxes increases with income. (Marginal rates are almost irrelevant, revenue is the only thing that matters.)