SHOW ME THE MONEY....

How is Social Security financed?

Social Security is financed through a dedicated payroll tax. Employers and employees each pay 6.2 percent of wages up to the taxable maximum of $142,800 (in 2021), while the self-employed pay 12.4 percent.

In 2019, $944.5 billion (89 percent) of total Old-Age and Survivors Insurance and Disability Insurance income came from payroll taxes. The remainder was provided by interest earnings $80.8 billion (7.6 percent) and revenue from taxation of OASDI benefits $36.5 billion (3.4 percent).

The payroll tax rates are set by law, and for OASI and DI, apply to earnings up to a certain amount. This amount, called the earnings base, rises as average wages increase.

 

Proposals to Change Social Security (ssa.gov)

In a November 2018 article in USAToday,  the writer states that Social Security pays out an avg of $1,417/month benefit (note sure I understand the term benefit here when this is something we are required to pay, and it is not optional). And as such this payout keeps an estimated 15.3 million Americans above the poverty line. Again please Universe explain to me how Social Security is defined in the terms of keeping one above the poverty line? 

So allow me Universe to do the math here, 

In 2018 the HHS states that a single household would be above the poverty line if that individual made $12,140/year. So based on that math Social Security would provide an individual $17,004. Now how does that align to minimum wage needed to meet that standard?

Say an individual working 40 hours/week and works 52 weeks/year == $17,004 would need to make $8.18/hour. 

But what are the numbers in 2021? Oh my currently the poverty line is set at $12,880/year, that would be the avg individual working would need to make $6.20/hour to stay equal to the poverty line.