What If Your Payroll Tax Went Into MicroStrategy’s STRC Instead?
A Cornell student modeled redirecting payroll tax into MicroStrategy's STRC stock, projecting significant retirement income.Summary
Ella Hough, a Cornell University senior and Bitcoin advocate, developed an interactive calculator simulating what would happen if a 22-year-old earning $100,000 annually redirected their 6.2% employee payroll tax into MicroStrategy's (MSTR) Variable Rate Series A Perpetual Stretch Preferred Stock (STRC).
The model assumes the STRC, which currently offers an 11.5% annualized dividend that tapers to 6% by retirement age, would yield approximately $2.69 million by age 67, translating to $13,405 monthly in dividend income, compared to the average Social Security benefit of $2,074.
However, the proposal faces significant risks, including the non-guaranteed nature of STRC dividends (which the board can adjust monthly) and the political impossibility of opting out of FICA taxes without Congressional action. Critics also noted potential issues like inflation erosion and suggested direct Bitcoin or MSTR common stock exposure might be superior, though the tool effectively frames Gen Z's anxiety about future Social Security solvency.
(Source：BeInCrypto)