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To: stylin19a

I somewhat agree with you. However, it is in keeping with the current political-speak. After all, future benefits are currently being referred to as "unfunded liabilities." As such, there is already calculated a per recipient benefit based upon wage-indexing. If we change the equation so that monthly distributions will be less -- even though it actually is a yearly increase as you stated -- we are indeed reducing the benefits versus what has been promised and calculated for.

Looking at this another way, the current calculus suggests that present contributors will receive about a 1.6% annual return on their investment. If we were to apply price-indexing, this would decline. Wouldn't this therefore be a reduction in benefits?

For instance, I have already received a projection of what my benefits will be when I retire. As I am in the group that would be impacted the most by the president's new proposal, a new statement reflecting this change would illustrate a lower monthly payment than the previous one. Isn't this a cut?


9 posted on 05/03/2005 2:13:06 PM PDT by Only Waxing
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To: Only Waxing

Would you prefer that we instead raise the payroll tax cap so that everyone pays 12.4% of their entire income towards Social Secuirty instead?

Or would you rather prefer that we do nothing, and slowly let the payroll tax go up to 18%?

There is no free lunch. Either take the indexing with a personal account option to increase your earnings, or be prepared to pay even more taxes towards a system that only pays you money once you reach the age of 65-70, and then keeps all remaining money after you die off.


10 posted on 05/03/2005 2:46:39 PM PDT by SunnyD1182
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To: Only Waxing
That's why SS is the third rail of politics. I admire the President for trying to tackle this.

SS, by law is not guaranteed. How can I have a cut on something I haven't gotten yet ?

BTW, look at your SS statement. There are asterisks.
People overlook the asterisks. The asterisks have been there for a few years.
12 posted on 05/03/2005 2:53:35 PM PDT by stylin19a ( Social Security...neither social nor secure.)
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