Posted on 07/30/2009 7:25:24 PM PDT by SeekAndFind
[...]
Perhaps as early as this year, Social Security, at $680 billion the nation's biggest social program, will be transformed from an operation that's helped finance the rest of the government for 25 years into a cash drain that will need money from the Treasury. In other words, a bailout.
[...]
Unlike the pigs feeding at Uncle Sam's trough, the people who qualify for Social Security old-age benefits -- the ones who'll benefit from the bailout -- have played by the rules and paid Social Security taxes for decades. It would be immoral to tell them, "Sorry, we have to trim your cost-of-living adjustment because we can't afford it," while expecting them to continue footing the bill for bailing out imprudent people and institutions.
Why am I talking about Social Security when health care is sucking up virtually all the oxygen in Our Nation's Capital? Because Social Security is a really big deal, providing a majority of the income for more than half the people 65 and up, and also supporting millions of disabled people and survivors of deceased workers; because the collapse of stock prices and home values makes Social Security retirement benefits far more important even to upscale baby boomers than they were during the stock market and home-price highs of a few years ago; and because the problems aren't that hard to solve if we look at Social Security realistically instead of treating it as a sacred, untouchable program (liberals) or a demonic plot to make people dependent on government (conservatives).
(Excerpt) Read more at money.cnn.com ...
underground
I’m in my early 30s.
I’d be willing to sacrifice every dime I’ve paid into this monstrosity of a Ponzi scheme if they would only stop where they are and take no more from me.
‘It would be immoral to tell them, “Sorry, we have to trim your cost-of-living adjustment because we can’t afford it...’
Well, then, it’s lucky congress never does anything immoral, huh?
Social Security funds are working hard financing Supplemental Security Income (SSI), a huge federal welfare program. SSI has no “work requirement” unlike that other “welfare”. SSI pays $674 per month to the “disabled” of ANY age who NEVER paid into social security. The SSI check is not really for paying medical expenses. Medicaid does that. Millions of children receive SSI and are the sole or primary monetary support for their mothers. There are vast numbers of families (mostly single mothers and their children) who live entirely off of housing assistance from HUD programs, SSI for a child or two, and food stamps (snap) benefits, plus Medicaid. Quite often this “disabled” child (ADHD or asthma or low IQ or something) can go to school all day every day without interfering at all with Mama being able to hold down a job, but, wait a minute, why should she? Rent? Paid for by HUD. Groceries? Food Stamp benefits just got a 13.6 per cent increase last April. Need meds? Have some Medicaid. No pressure to get out there and work. Who does that?
Many government workers are exempt from social security.
(How’s that for ironic.)
Don’t you dare die! Find a way, or let us know what we can do to help!
I'm 46. I agree with that and will gladly keep paying to support the current recipients, but I am planning for my own retirement and expect nothing.
It's already spent. If you get it, it will come from higher taxes on someone else (or inflation or gov debt default).
Sorry to hear that. Part of the reason is that younger people like me (46) don't have that SS money to invest in new companies to create jobs. The whole transfer payment scheme is a drag on the economy.
See my previous posts. The people on the program now, along with disabled people, will need to stay on it since many have not had any opportunity to save for retirement (e.g. 401k or similar).
Many including myself would gladly take the early withdrawl penalty before handing our accounts (either seized or highly surcharged) to the gubmit.
The communists in charge would love the scenario you described, and it is one I've predicted in the past, too.
Not only would the government get the full tax payout, they'd also get the 10% early-withdrawal penalty.
And, yes, it would wreak havoc on the stock markets — far more than they could have hoped to cause with what they've been doing for the past 6 months that has been designed to destroy faith in private investment, the stock market, and the free market itself.
You see, I believe part of the anti-Capitalist goal of the Commie-in-Chief is to destroy the entire concept of venture capital, whether of major investors or you and me “investing” through 401ks.
With no where else to turn (because the markets can't be trusted), we'll gladly “invest” our extra money in the US Government (Treasuries, Bonds, etc.) if they promise a 2% or so return.
And don’t forget, if you make an early withdrawal from your 401k or IRA, that is counted on income on your current tax year. For many people, any substantial withdrawal bumps them up into the next tax category — yet another reason why the Commie-in-Chief will likely propose an early tax on private-retirement accounts, hoping for this type of scenario.
Interestingly, the Amish don’t pay social security. They have an agreement with the fed that they take care of their own.
I wonder if I should convert.
The solution to the Social Security problem is already being debated in Congress. Health care ‘reform’ will deny treatment to seniors and persuade them to assisted suicide. Seniors gone, SS payments gone.
My 120,000 paid in to SocSec is spent .....
Don’t raise Taxes to give me my money....Govt. bureaucrat layoffs can pay me instead of paying for workers who have retired ON THE JOB.
Then those Govt. Bureaucrats who did NOT PAY INTO SOCSEC took my money and paid themselves....!!
See, I can ID a “Villan” for my particular cause just like Pelosi and Obama.
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