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SS is in fact an Entitlement as the majority of people burn through what they contributed long before they stop taking out of the system.
So, at some point you will be taking something that's NOT yours.
You were saying?
That was true up until the Baby Boom generation starts drawing. Previous generations spent only a part of their working life having FICA deducted. That ended with the generation born from around 1940 onwards.
Most actuarial estimates put total Baby Boom SS payments at about 20% or so less than what was put in by them.
Everyone who put into it has a right to get their share back regardless if they need it or not. Maybe they want to gove it to their son or donate it. It sure as hell,isn't the government's place to decide. Maybe they shouldn't have raped the funds all of these years., once again it come down to the haves vs the have nots. The have nots are always up for more social programs that they can collect on. Screw them. It's their own fault that they didn't plan on their retirment.
It's not "VERY easy" to hit the highest tax brackets. A married couple pulling in $250K is still only in the 28% tax bracket. Other than for the truly rich, effective tax rates in the United States are astoundingly low by first world standards. The median middle class married couple making $53K barely pays any Federal income taxes at all after they're done itemizing mortgage interest, property taxes, and state income tax. The rest of the first world has much broader based Federal income taxes which is why the US has the massive national debt problem
Something like 25% of retirees have a household net worth of $1 million or more. $1 million is not going to fund a luxurious retirement unless you're one of the lucky few with the public sector or union defined benefit pension.
Well at least compared to those other highly taxed first world countries they at least get something for those taxes paid - e.g., healthcare, reduced or no college cost, unemployment insurance that is your actual salary for 12+ months, vacation time of at least 4 weeks....here we get very little benefit for the taxes we pay. And I agree with you on the non luxurious retirement for those with $1M 401K, which is why we need the SS.
SS is in fact an Entitlement as the majority of people burn through what they contributed long before they stop taking out of the system.
So, at some point you will be taking something that's NOT yours.
You were saying?
Actually, you are wrong. If you invested your contributions in even very conservative investments, you would have been much better off versus the modest rate of return that you get via the social security payments. In fact, high income earners get the worst end of the deal when considering return rates. This data comes directly from Social Security.
I've said that for years. I think S.S. should just cover the gap between what a person receives via pension (if they're fortunate enough to have one), annuity, etc. and a "living wage". If they're already earning more than that, they don't get any S.S.. However, whenever I mention that, the immediate response I get is, "I paid into it all my life; I want my money!". When I ask if they want all the portion of their taxes that went to cover unemployment benefits even though they, themselves, have never collected unemployment, I get a blank stare.
Apples and oranges. With unemployment, you knew the deal from the beginning was that you accrue no guaranteed benefits and will never get anything back if you are never unemployed. With social security, the deal was you pay in during your working years and draw a monthly benefit when retired, based on the age you retire. If the money was paid in under those terms, it's not right to change those terms when it's time to draw the benefits.
SS is in fact an Entitlement as the majority of people burn through what they contributed long before they stop taking out of the system.
So, at some point you will be taking something that's NOT yours.
You were saying?
This is flawed. If I were allowed to keep that money and invest it as I see fit I would likely see returns of 6-8%, significantly growing the dollars I put in. I should expect to see my capital grow.
I agree with this ^^^. Trying to change programs, military retirement is another they mess with, after making a promise that you do this, that and another thing and we will provide such and such is just wrong. Remember that they have taken money from SS to use in other places, also wrong. There are many ways that we can replenish SS IF we put Americans first and stop trying to save the rest of the world, going into debt and spending money we don't have or stealing it from other programs. Americans have paid into the tax system and SS to provide for Americans. Let's just try that and see where it goes.
Agreed with many points. Reps for you. I'd still like to see a bigger bang for the buck in terms of money being paid in to SS versus the benefits paid out. It seems like there should be a way for taxpayers to get the benefits they have PAID FOR and also to make the program make money. Without privatizing it.
Privatiation sounds good if you are rich, but SS is supposed to be a safety net. With the utility in my state, privatization just resulted in higher gas and electric prices and very wealthy CEO's. That is nice for them, but heat and cooling in some cases heating and cooling costs have become very high for people, to support the business' making a profit. I've seen some older people struggle with heating costs. It seems bad. Not everything can be left up to private enterprise.
Anyway back to SS. It would be great to see a graphic of how much tax dollars are paid in versus what is paid out from the program. Also how is Congress able to steal the SS money for other things, like (I'm assuming here) the foreign wars they seem to love waging? I've heard they do some sleight of hand with the money in the trust fund, but not sure if this is a rumor or true, or how they get away with it...
Most people in the US are forced to pay into social security. This is OK as long as they get the benefits the government promises them. This is also OK for me as a Libertarian, even if some of the people who get money are sick and are not able to work, and thus are being supported by tax money. We have enough beggers on the US streets today. But there has to be a way to make the programs work better.
Actually, quite a few people who truly don't need the money feel that the gov't is wasting it by sending it to them every month. Why would Bill Gates and the many people who retired at 40 from Microsoft, for example, need a SS check? I've known even run-of-the-mill lawyers, doctors, businessmen who said that the government doesn't need to be sending them those checks. They wouldn't miss the payouts if they suddenly stopped coming. But SS is defined as an entitlement, so everyone is supposed to get it. Another way to address the shortfall is to remove the cap on income subject to the tax.
If Mr. Gates and these other persons don't "need" nor "want" SS benefits why did they file to receive them in the first place? Last time one checked the government just does not begin sending out SS benefits once you reach a certain age.
If Mr. Gates and these other persons don't "need" nor "want" SS benefits why did they file to receive them in the first place? Last time one checked the government just does not begin sending out SS benefits once you reach a certain age.
This is true. Filing for benefits is a positive act and you also have fill out a short form. If that's not done there are no checks sent. If Buffet, Gates, et al don't think it's morally correct to collect Social Security then they just don't file to get it.
Oh, I got my first one deposited this morning. But I filled out the paperwork.
Agreed with many points. Reps for you. I'd still like to see a bigger bang for the buck in terms of money being paid in to SS versus the benefits paid out. It seems like there should be a way for taxpayers to get the benefits they have PAID FOR and also to make the program make money. Without privatizing it.
Privatiation sounds good if you are rich, but SS is supposed to be a safety net. With the utility in my state, privatization just resulted in higher gas and electric prices and very wealthy CEO's. That is nice for them, but heat and cooling in some cases heating and cooling costs have become very high for people, to support the business' making a profit. I've seen some older people struggle with heating costs. It seems bad. Not everything can be left up to private enterprise.
Anyway back to SS. It would be great to see a graphic of how much tax dollars are paid in versus what is paid out from the program. Also how is Congress able to steal the SS money for other things, like (I'm assuming here) the foreign wars they seem to love waging? I've heard they do some sleight of hand with the money in the trust fund, but not sure if this is a rumor or true, or how they get away with it...
Most people in the US are forced to pay into social security. This is OK as long as they get the benefits the government promises them. This is also OK for me as a Libertarian, even if some of the people who get money are sick and are not able to work, and thus are being supported by tax money. We have enough beggers on the US streets today. But there has to be a way to make the programs work better.
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