Posted on 05/28/2015 4:52:18 AM PDT by Eric Pode of Croydon
For decades, any problem that developed within Social Security was fixed by shifting the cost to future workers. Today that isn’t possible.
Do you want to privatize Social Security? The math is simple. There is no way to privatize a negative number. We will have to fill in the $25 trillion dollar hole before there is anything to privatize.
Significantly curtail who gets SS disability benefits. There are millions of able-bodied Americans who can work, but have scammed the system to collect disability payments. I know several of those lowlifes. They disgust me.
Politicians never seem able to grasp the First Corollary of Murphy’s Law. If something can’t happen it won’t.
Not only is there no way to privatize a negative number ... there's no way to raise tax revenue from people who aren't working in the future, either. This is why it's basically foreign workers who are indirectly financing our entitlement programs today -- through the low-interest bonds issued by the U.S. government, and purchased by foreign interests, to finance our massive (and growing) $18 trillion debt.
That is a good idea, and will solve perhaps 5% of the $25 trillion financial hole.
What does the author mean “you can’t privatize it?”
You keep the program in place for existing seniors age 60 and older.
You roll those who put their money into the system (age 30-60) into an IRA or 401(k).
You give those age 29 and under a $2,000 tax credit to invest in their own IRA or 401(k).
Massive economic growth combined with cutting spending will take care of the rest.
So basically, not only will people who work hard and have success get taxed at a much higher rate, but then, when it comes time to collect, won’t get anything? The super rich won’t care, but the just over the line folks will get gypped big time. That decreases incentive to produce. It also penalizes savers who save and invest and have something left for their own retirement. This scheme is meant as just another money grab. What they need to do is not give it to people who have not paid in and especially not give it to illegals.
Not to mention their lawyers who routinely collect 1/3 of their benefits. In short, it’s been a legal goldmine.
SS Disability Insurance is nearly broke and they are talking about a benefit reduction. Let’s see if that actually happens or if Congress blinks. I predict the latter.
Brings us to reason #1 the right wing side of the professional political class (PPC) wants to legalize 30-50 million illegals going forward. To prop up SS until the current PPC are long gone.
(Reason #1 of the left is to elect democrats)
I really don’t count on anything for my retirement beyond my own savings & investments. And even that is questionable because I half expect the Government to confiscate that “for the common good”.
“That is a good idea, and will solve perhaps 5% of the $25 trillion financial hole.”
Negative, negative, negative.
Just take the disability rules back to what they were in 1991 and see what happens. The dagger in the heart of SS was when ‘the bent one’ wanted to claim he had, ‘ended welfare as we know it.’ In a sense he did. He pushed billions of dollars of it into the Social Security payout. It has been eating up funds ever since. And the damage escalates year by year.
Do you know how much money this is??
It's not in a vault somewhere, it's going to pay the monthly checks of current retirees.
Your first and second steps can't happen at the same time, because it's the same money. THAT'S THE PROBLEM.
If you take out all the fraud in the SSI program, Social Security still crashes, just a decade or so later that it currently is planned to.
Repeal the Earned Income Tax Credit. Money not given away to begin with is money saved.
The US government interfering with YOUR income.... what could go wrong?
The problem with that theory is that if fails to recalculate the reduction in long term payouts without all of the nonsensical claims. If the ONLY payouts that were made were to people that had ACTUALLY paid into the system throughout their life, the system does not crash.
As far as I am concerned, the ‘fraud’ includes those people legally collecting money, but are only legal because people like Clintoon wanted to hide their increased welfare spending. Zero has since added to this abuse, and sadly, GWB did almost nothing to clean it up.
The problem with SOCIALISM, is that eventually you run out of (other people’s) money.
solution:
privatize /spin off government assets, issue shares to those that paid into ss. Anwar, government land, radio frequency rights, hell even amtrack could be grown into a valuable high speed rail company.
Just wait until OBAMACARE is running on EMPTY... where do you think the “cost cuts” will hit?
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