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Old 04-19-2015, 09:39 AM
 
Location: NC Piedmont
3,957 posts, read 2,899,279 times
Reputation: 6353

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Quote:
Originally Posted by Petunia 100 View Post
SS going bankrupt does not mean "there will be nothing left". I don't understand why this myth continues to be repeated as truth. Benefits will be reduced, but will continue to be paid from current payroll taxes.
I don't even think they will be reduced, at least not the first time we approach a shortfall. It might actually be a more responsible approach to reduce them, but I doubt we will (again - the first time there is a shortfall). If we drop the cap on the tax it is fixed forever. The problem with that is that a lot of people will howl about it being wealth redistribution. It is, but it isn't going to make anyone who is wealthy go broke. We need to face up to how the numbers are falling. We have to make the wealthy pay more because nothing else will work.
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Old 04-19-2015, 09:40 AM
 
12,731 posts, read 10,024,982 times
Reputation: 9547
Quote:
Originally Posted by freemkt View Post
How does that asset limit work out? I have two old debts I hope to eventually resolve with discounted lump sum settlements, e.g. pay $X,000 on each. If I'm not allowed to have more than X dollars, doesn't that screw my creditors if I am not allowed to save up enough to settle the debt?
Have extra withheld from your paycheck and use the IRS as a piggybank. When filing your return elect to "apply this year's refund to next year's taxes". Because overpaid taxes do not count against the asset limit (IIRC), you can "save" the amount using this method. When you are ready, call the creditor, get settlement offer in writing, then file amended tax return, get refund, and pay settlement.
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Old 04-19-2015, 09:41 AM
 
8,974 posts, read 5,180,448 times
Reputation: 10238
Quote:
Originally Posted by Loveswater_outdoors View Post
I think what everyone is missing is that those of us under 40, and really under 30 are not going to have much if any assistance when we turn 65. The SS will be depleted due to it being bankrupted in 2033 as has been shown by several economists Why is Social Security running out of money?, and I for one haven't been able to save due to student loan costs and scarcity of jobs combined with low wages and inflation and cost of living being out of control. The baby boomers are going to consume it all, and there will be nothing left.

Who is making your decisions? Why did you take on debt to go to school, then choose to live someplace with scarce jobs, low wages, and out of control inflation? Sounds like a horrible place. Why not move?

You are responsible for you. If you don't like the way your life is going, change it. No one else can.
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Old 04-19-2015, 09:45 AM
 
8,974 posts, read 5,180,448 times
Reputation: 10238
Quote:
Originally Posted by CarvedTones View Post
I don't even think they will be reduced, at least not the first time we approach a shortfall. It might actually be a more responsible approach to reduce them, but I doubt we will (again - the first time there is a shortfall). If we drop the cap on the tax it is fixed forever. The problem with that is that a lot of people will howl about it being wealth redistribution. It is, but it isn't going to make anyone who is wealthy go broke. We need to face up to how the numbers are falling. We have to make the wealthy pay more because nothing else will work.
I agree, I think it will be "fixed" via increased payroll taxes. Either the rate will rise, the cap will rise, or some combination of both.

But even if nothing is done, receiving 70% of your estimated benefits is not the same as receiving 0% of your estimated benefits.
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Old 04-19-2015, 11:01 AM
 
Location: NC Piedmont
3,957 posts, read 2,899,279 times
Reputation: 6353
I hope they do the cap increase or remove the cap. I would be affected either way; I want it to be the cap because they need to address the inequality in small adjustments like that. Nothing has worked to stop the increase in inequality from playing various political games trying to get business to employ and pay more people by giving businesses and wealthy people tax breaks. Mathematics won't play politics; we need to face reality.
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Old 04-19-2015, 11:04 AM
 
48,516 posts, read 84,124,097 times
Reputation: 18056
Quote:
Originally Posted by Petunia 100 View Post
SS going bankrupt does not mean "there will be nothing left". I don't understand why this myth continues to be repeated as truth. Benefits will be reduced, but will continue to be paid from current payroll taxes.
Yes just as the SS trustees have pointed out; if not reformed it will mean reductions by law ;not complete cuts. But then when it gets to crisis state it will be addressed and like fixed like other countries by raising tax some and raising retirement age. France just raised not the age but same thing in increasing years needed working to qualify. First tho disability program will run into shortfall before SS retirement.
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Old 04-19-2015, 11:47 AM
 
Location: middle tennessee
1,929 posts, read 999,279 times
Reputation: 7030
Bring back the county farm!
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Old 04-19-2015, 12:42 PM
 
33,046 posts, read 22,149,341 times
Reputation: 8970
Quote:
Originally Posted by ncole1 View Post
Have extra withheld from your paycheck and use the IRS as a piggybank. When filing your return elect to "apply this year's refund to next year's taxes". Because overpaid taxes do not count against the asset limit (IIRC), you can "save" the amount using this method. When you are ready, call the creditor, get settlement offer in writing, then file amended tax return, get refund, and pay settlement.

BZZT! I'm not allowed to apply a tax refund to anything because the Dept of Education applies it to student loans.
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Old 04-19-2015, 12:51 PM
 
33,046 posts, read 22,149,341 times
Reputation: 8970
Quote:
Originally Posted by mathjak107 View Post
always someone elses fault.

It's certainly the drunk's fault that he gets drunk, has anger issues, has not worked a day in years, unpredictably goes on drunken rages, engages in domestic violence and creates an environment where everyone tries to avoid him as much as possible.

It's not my fault I was raised by drunks and druggies, and have issues dealing with angry drunks.
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Old 04-19-2015, 12:59 PM
 
33,046 posts, read 22,149,341 times
Reputation: 8970
Quote:
Originally Posted by Petunia 100 View Post
Who is making your decisions? Why did you take on debt to go to school, then choose to live someplace with scarce jobs, low wages, and out of control inflation? Sounds like a horrible place. Why not move?

You are responsible for you. If you don't like the way your life is going, change it. No one else can.

Jobs were regionally scarce when I graduated, Upon graduation, I lost my on-campus janitor job and literally could not afford to relocate.to an area with jobs.
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