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[RecklessSFO]

Obama will raise the social security tax over the 102,000 base. However, the maximum benefit is calculated at the maximum USD 102,000. In this case, you are buying more expensive insurance or pension plan but you don't get extra pay-outs or benefit for the increased premium.

I did research on WSJ and why Franklin Roosevelt created Social security, it's meant to be a pension program based on personal contribution, not a welfare.

"The fundamental principle of linking taxes and benefits was established when Roosevelt designed Social Security. He wanted to make sure that it was not a welfare system, calling Social Security "a base upon which each one of our citizens may build his individual security through his own individual efforts." His instincts have generally proved sound. Had Social Security been considered "welfare" rather than a return on taxes earned, it probably would never have had the popularity or the staying power that it has enjoyed for the last seven decades"
why this become a welfare program?

Simple. Currently, the most people can contribute to Social Security is 6.4% of the maxium 104,000 salary. That's around $6,500 per year.

With this $6,500 contribution, when you hit 69, you are eligible for $2,053 maximum benefit.

Now, some people will pay alot more that $6,500. Say, a business owner in a good year can pay say $100,000 per year on social security (or more), but when he hits 69, he will only receive maximum $2053 per month.

In this case, he subsidized population without anything in return, which in essence, a welfare program.
when I say now, I mean under Obama's plan.

Also, the social security wage is 102,000 (not 104,000 - it's a typo there)