Social Security Fix

[alaskaguy]

Mr. Friedman addresses the cost of eliminating the federal social security program at the following web site:

Speaking the Truth about Social Security Reform

In addition Mr. Friedman favored eliminating both the Medicaid and Medicare programs.

[iceclone]

Mr. Friedman addresses the cost of eliminating the federal social security program at the following web site:

Speaking the Truth about Social Security Reform

In addition Mr. Friedman favored eliminating both the Medicaid and Medicare programs.

I have some philosophical disagreements with the views held by the late Dr. Friedman, and hence do not accept all of his recommendations as desirable. However, as always, his logic is impeccable and his clarity exceptional. This is recommended reading for anyone (only two pages).

Thanks to alaskaguy for providing the link.

[Johnny Tremain]

I am not saying to end medicare or medicade, I am just asking to get out of SS, that is not the governments problem to provide me retirement income. That is my problem.

Question. You say it is not the government's problem to provide you with a retirement income yet permissible for the government to provide you, by not ending medicare and medicaid, with medical and disability benefits

So, when you get right down to it, you are not opposed to the concept to receiving government benefits. Its just that you, like many of us, wish to be able to decide for yourself what benefits you want to pay for and for which you do not. Is that right?

Kind of like me picking what war I want my taxes to pay for and what war someone else should pay pay for if they think it is necessary, eh?

[herbiedoobie]

Not exactly. The federal gov't spending money on wars is constitutional. Stealing it from one class of people, and giving it to another in the name of "welfare" is not.

I imagine if one of my daughters were in the hypothetical case you speak of, we'd do the best we can with what we have. Just like I did when I was in a debilitating car accident. Didn't steal from my fellow taxpayers then, either.

I don't think you "get" that people are tougher than you give them credit for.

[Stormin]

Social Security is actually an "insurance" program. Protection which will provide income to your family if you die young with children. Protection which will provide income to yourself in the event you become disabled. Protection which will provide income in your later years.

Social Security has NEVER been intended to be the primary source of funds for retirement. That is what IRA's and 401k's are for. At the present time, the surplus is put into the general fund. The low interest paid to Social Security lowers the cost of interest on our national debt because the Federal Government is essentially borrowing the money at these lower rates of interest.

Social Security can NEVER go broke. It isn't possible. By law the Social Security Administration can not run a deficit. In the year 2042 or 2052, according to whichever estimate you want to believe, the Social Security Program will have exhausted the surpluses paid into it and only be able to pay benefits according to the current taxes paid. If this occurs and nothing is done, benefits will be paid at a reduced rate of between 74% and 78% of what are scheduled benefits. These estimates are very conservative. If the economy performs better than expected the Social Security Fund could continue and actually not spend the surplus funds paid into it. Raising the cap slightly on wages subject to Social Security would also create a stronger financial position.

The BIG problem facing this country in just 10 years is our financial budget. At the present time, the Social Security Surplus is going into the General Fund. But in 2017, the Federal Government will have to pay back the Social Security Fund the money they have borrowed. Now if we can't balance a budget with the Surplus Social Security Funds added to our budget, how are we going to pay Social Security back while getting our books balanced.

So instead of lamenting and agonizing over something that may or may not happen 35 to 45 years in the future, why not focus on the train wreck that lies ahead of us just 10 years into the future? Keep in mind also that the War in Iraq has been kept off budget, so it adds to the National Debt but isn't factored into the yearly budget.

So how do all of you propose to fix our Government's financial train wreck that will start in 2017? That should be your focus.

[brianhos]

What we should do to fix SS is raise the SS tax rate on the lower income tax payers, that way the people that benefit from this will be the ones paying for it. I am just ticked because I know by the time I get there, there is going to be "means testing." Which means those of us that plan and save will get nothing, while those who **** all their money away will get SS.

[Wesley]

I believe the money has been spent already and we have federal IOUs. We could not shut it down at this point. We could not print enough money to cover the bonds.

[brianhos]

You mean our government has screwed us again? That is unpossible.

[Cyclonepride]

What we should do to fix SS is raise the SS tax rate on the lower income tax payers, that way the people that benefit from this will be the ones paying for it. I am just ticked because I know by the time I get there, there is going to be "means testing." Which means those of us that plan and save will get nothing, while those who **** all their money away will get SS.

Want to make a friendly wager in Cy credits on whether that ever happens in a million years? Poor people make too good of a voting block.

[brianhos]

Want to make a friendly wager in Cy credits on whether that ever happens in a million years? Poor people make too good of a voting block.

Yeah it will not happen, we only have class warfare against the evil rich people.

[iceclone]

Yeah it will not happen, we only have class warfare against the evil rich people.

Not all rich people are evil - just those who don't pay their taxes with a smile

[iceclone]

I believe the money has been spent already and we have federal IOUs. We could not shut it down at this point. We could not print enough money to cover the bonds.

I really recommend reading the very, very short article that alaskaguy linked. It is an extremely good analysis in 2 short pages.

While it is fine to disagree with Dr. Friedman's recommendations, his analysis is not off (and the bonds could certainly be covered).

[Stormin]

What we should do to fix SS is raise the SS tax rate on the lower income tax payers, that way the people that benefit from this will be the ones paying for it. I am just ticked because I know by the time I get there, there is going to be "means testing." Which means those of us that plan and save will get nothing, while those who **** all their money away will get SS.

Means testing is determined by your income level, NOT by the amount of money in your bank account. So your argument about p*ssing all their money away makes no sense. And Social Security is based upon the amount you have paid in, so the more you pay in the more you get back out of it. Plus, even if it is means tested, at the present time HALF of the Social Security is completely exempt from any taxation while the other half is subject to your marginal income tax rate.

Would you be happier making less outside income? Great, then you won't be subject to means testing. And you won't get nothing. You will probably get a pretty decent Social Security check. And if you died tomorrow you can be secure in knowing that your child in the picture will have some form of support to help them while they grow up.