Republican presidential candidate Chris Christie has called out billionaire investor Warren Buffett, stating that “rich people should not be collecting Social Security.” Christie made these remarks during the third GOP presidential primary debate in Miami. He argued that the retirement age for younger workers should be raised and eligibility for Social Security benefits should be controlled as a way to address the issue of expensive entitlement programs. Christie also emphasized that Social Security was established as a safety net to prevent elderly poverty in the country.
The Social Security program is funded through a dedicated payroll tax, where both employers and employees contribute 6.2% of wages up to a certain limit. The taxable maximum, or contribution and benefit base, changes each year according to the national average wage index. In 2023, the taxable maximum is $160,200, resulting in a maximum Social Security tax of $9,932.40. There is no maximum wage limit for the Medicare tax, and those earning over $200,000 in a year have an additional 0.9% withheld.
Wealthy individuals often pay Social Security tax on only a portion of their earnings, as a significant part of their income comes from capital gains in their investment portfolios, which is not considered earnings for Social Security purposes. On the other hand, the average monthly Social Security benefit payment as of September 2023 was $1,706, with retirees aged 62 or older who have worked and paid Social Security taxes for at least 10 years being eligible for these benefits. Those who delay claiming benefits until their full retirement age or later receive higher monthly payments.
Social Security is a significant category of federal spending, and deficits in the program are projected to increase as more baby boomers retire. Christie and fellow GOP candidate Nikki Haley both propose raising the retirement age for younger workers without cutting benefits for current seniors. They also suggest limiting benefits for the wealthy and expanding Medicare Advantage plans. However, they did not provide specific details on the proposed changes. Haley warned that Social Security and Medicare would go bankrupt within the next decade if reforms are not made.
