If the government mandates it under threat of violence, it’s called a tax.
It could also be classified as an insurance premium, but a government mandating it is the key characteristic of a tax.
But the fact that the government reduces the annuity amount by increasing retirement age and benefit purchasing power means it is not insurance either. It is wealth redistribution from the working to the non working.
Social security and Medicare are also payroll "taxes" in that they're not optional and are automatically deducted.
This is called insurance, not tax.
If the government mandates it under threat of violence, it’s called a tax.
It could also be classified as an insurance premium, but a government mandating it is the key characteristic of a tax.
But the fact that the government reduces the annuity amount by increasing retirement age and benefit purchasing power means it is not insurance either. It is wealth redistribution from the working to the non working.
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