Obama in SOTU - Means Test SS? (means testing Soc Security)

Zero Hedge ^ | 1-19-2011 | Bruce Krasting

[Frantzie]

Next week we get the State of the Union address. The question, “Is there anything that might come from the speech that will impact the markets? The economy? Maybe. One area that I think we may get a recommendation from the President is a means tax on Social Security benefits.

[Frantzie]

My guess is O think old white folks are too rich.

50% of baby boomers (45 to 59) voted for this. 43% of people over 60 voted for it. Hope & Change.

[Nervous Tick]

Just another variant of soaking the “rich”. (”rich” in this case meaning “anyone who saved, worked hard, and planned wisely for their future”)

I know this is coming sooner or later; that’s why I’m shifting all the revenue I possibly can into non-compensation categories.

[ConjunctionJunction]

Can somebody translate “means testing” for me? Is it just another way of saying redistribution of wealth?

[Free Vulcan]

What sucks about this is that many now ‘rich’ probably started out working dirt stinkin’ poor while putting into SS and gradually rose in income due to hard work, but get shafted because of how much wealth they have today.

[proudpapa]

I wonder how many times Obummer will reference the Tuscon killings. And being there when Gabbie Gifford opened her eyes. {sniff}

He’ll probably have the parents of the cute little girl sitting next to his wife...as he declares the need for greater gun control laws.

[Pollster1]

I’m not going to critique anything our Dear Leader might suggest, not in advance at least. Let’s wait and see what the socialist has in mind.

[GlockThe Vote]

SS is going bankrupt if not already there.

www.usdebtclock.org

[jimfree]

At the risk of offending the spirit of Claude “I will not vote for a decrease in benefits” Pepper, I am perfectly content to rename Social Security “Old Age Welfare” and means testing applicants.

[Roccus]

The taxation of SS retirement benefits is a form of “means testing” that is already in place.

[SECURE AMERICA]

Obama came in under Hope and Change.
America has liitle hope under Obama but we have gotten change
The State of the Union Address - Obama Administration 2 years later
Unemployment - Jan 2009 was 7.6 % / Jan 2011 is 9.4 %
Average price for gallon of gas - Jan 12 2009 was $1.78 / Jan 17 2011 was $3.10
National Debt - Jan 14, 2009 was 10.6 Trillion Dollars / Jan 14, 2011 was 14.0 Trillion dollars

[Frantzie]

Glenn Beck, O’Reilly and Peggy Noonan loved Obama’s funeral rally beer hall speech whilst standing on coffins.

[whitedog57]

SS is already means tested in the sense that if you are in a higher tax bracket, you pay a greater amount of taxes on SS.

These people are talking about caps on SS or even an inverse structure where they base what you get in SS based on other income. So, if you saved appropriately, you get no SS. If you squandered everything, you will get the most SS allowed.

[StormEye]

"Can somebody translate “means testing” for me? Is it just another way of saying redistribution of wealth?"

Yes, it's another way of saying: "Stupid American public. We're stealing your money in front of your eyes and there's nothing you can do about it. So hurry up and grow old and die."

[KarlInOhio]

There is already a considerable amount of means testing in the SS system. If you make twice as much as someone else throughout your life and therefore pay twice as much in SS taxes you will not get anywhere close to twice the SS payments in retirement.

It might just be time to throw aside the retirement and insurance camouflage and just state outright that Social Security is a welfare program for the old.

[babble-on]

“Means test” is this: If you are a person of “means” then you would not qualify for the full benefit. In other words, they see how much money you have, and if it’s too much in their view, you get less of the benefits from the government-run pension system.

[Taffini]

non-compensation categories.

what is this and where is it

[babble-on]

It should be one or the other. Either it’s a pension, in which case it should be actuarially sound and not invested in the debt issued by the payer, or it should be a welfare scheme, in which case it should be funded out of general government budget.

[Nervous Tick]

>> what is this

Here is a contrived example:

Suppose you own and operate a small business organized as an S-corp. To the extent that you can afford to take less compensation income (i.e. salary) and plow that money back into the business so you increase the value of the business when you eventually sell it, you have converted social-security-taxed compensation income to a capital gain taxed at a lower rate (and no social security “payroll” tax, as of now anyway).

That’s one way, and there are others.

[screaminsunshine]

What a Gyp.

[PTBAA]

From each according to his ability, to each according to his need....