The Need for Social Security Reform, as Illustrated by Cartoons

Townhall.com ^ | January 25, 2015 | Daniel J. Mitchell

[Kaslin]

Political cartoons, if done correctly, are remarkably effective tools for teaching about economics and public policy.

In this post from last year, for instance, I put together some of my favorite examples on topics such as Keynesian economics, labor supply incentives, minimum wage, and the welfare state.

Today, we’re going to try something different. Using a series of cartoons, we’re going to explain the need for Social Security reform.

First, let’s establish that there is a problem. I’ve shared data on America’s long-run fiscal crisis from international bureaucracies such as the IMF, BIS, and OECD. And I’ve explained that demographics are a big part of the problem.

Simply stated, tax-and-transfer entitlement programs don’t work very well with aging populations.

But that point is made with humor in this Michael Ramirez cartoon.

[gleeaikin]

I’m not sure what you are referring to. Are you collecting Social Security? If so, do you do the calculation to see how much of your SS you have to pay taxes on? Feel free to go to Private Message to discuss your personal situation. Also here is the link to IRS. Scroll down to page 29 to see the form I am talking about. This calculation is entered on lines 20a and 20b on the IRS 1040 form. Also it is explained on page 28.
http://www.irs.gov/pub/irs-pdf/i1040gi.pdf

[TexasGator]

“I’m not sure what you are referring to. Are you collecting Social Security? If so, do you do the calculation to see how much of your SS you have to pay taxes on?”

I was referring to the amount of wages SS is withheld.

As to the minimum SS taxed, 50% is taxed above the min incomes you listed. 85% is taxed above 34k/44k.

[Bruce Kurtz]

I’ll be 62 in April. Yesterday, I applied on line for SS benefits. I was asked to complete a survey. One of then questions was something like this. You bought a new vehicle within the last few years. It then listed I think 5 vehicles, one of which was mine. Who is collecting all this info?