Alleviating Poverty 59
would be true even if it could be shown that the system treats all with the approximate equitable results that a 1zedakah-oriented approach would expect. This, however, is demonstrably not the case. One group, in particular, is glaringly disadvantaged: moderately“highearnings” workers— for instance, those who make fifty percent more than the average salary, ultimately receive a benefit that replaces only thirty-eight percent of their average annual earnings(as opposed to a fifty-seven percent replacement rate for the low-income worker who earns half of the average salary). Given that, in mid-2004, the average U.S. salary was around$34,000, those making fifty percent more would have been earning around$51,000, considerably below the$90,000 cap on taxable earnings. Hence, all those earning from $51,000 to$90,000 would have had Social Security taxes apply to every penny of their income, yet would ultimately receive thirty-eight percent or less of their annual earnings as a benefit. Unlike the highest six percent of income earners, this group must pay the full tax rate, while yet anticipating a reduced rate of benefit.* It is clear, then, at least one group that is assuredly disadvantaged comprises those who earn above average, but“below the cap,” incomes.
Consequently, from a Jewish perspective, Social Security, as it is currently constituted, is unsatisfactory for several reasons. First, and most important, while it is true that the existence of Social Security has dramatically reduced poverty among seniors, this ought not to lead to the conclusion that the present system is the best honed tool for achieving this goal. Poverty rates among seniors in the United States continue to hover around the ten to twelve percent mark.” It is plain that if all those fortunate enough to have accumulated adequate resources to support themselves through their retirements were no longer to receive Social Security benefits, the needs of the elderly poor could be addressed in a far more satisfactory fashion. As has been seen, Jewish texts do not advocate that those of means should benefit from publicly collected funds, even if these funds are