Posted on 01/06/2005 5:54:40 AM PST by ceoinva
AARP fails to recognize that Social Security no longer is a good deal for working people today, the children and grandchildren of its members. Instead, they turn to their old liberal mantra saying "Let Them Be TAXED!"
In a letter to members, the organization flatly opposes allowing workers the freedom to choose to shift some of their Social Security payroll taxes into personal savings and investment accounts that would pay part of their future retirement benefits.
AARP fails to recognize that Social Security no longer is a good deal for working people today, the children and grandchildren of its members. For most of these workers, even if Social Security could somehow pay all its promised benefits, the real rate of return represented by those benefits on taxes paid into the program would be 1 to 1.5 percent or less. For many it would be zero or even negative.
Workers would now get a much better deal saving and investing in personal accounts. Let's look at how one concrete reform proposal would work, the legislation introduced in Congress by Republicans Rep. Paul Ryan of Wisconsin and Sen. John Sununu of New Hampshire.
That bill would allow workers to save and invest roughly the amount in their FICA box each paycheck in their own personal account, which they would directly and individually own just like their IRAs or 401(k)s. A study by Peter Ferrara of the Institute for Policy Innovation showed workers investing through such accounts over their lifetime half in stocks and half in bonds and earning standard market investment returns would retire with enough money in their accounts to pay about two-thirds more than Social Security promises, but cannot pay. If they invested two-thirds in stocks and one-third in bonds, at standard returns their accounts would be able to pay them about twice what Social Security promises.
AARP argues "the guarantee Social Security provides is one worth strengthening, not replacing." But the U.S. Supreme Court has explicitly held that, under the law, Social Security benefits are not federally guaranteed. In the case of Fleming vs. Nestor decided in 1960, the Supreme Court ruled Congress retains the power to cut some or all Social Security benefits to some or all workers at any time.
In contrast, the Ryan-Sununu bill does include an explicit federal guarantee all workers would receive the full benefits promised under current law, whether they choose the personal accounts or choose to stay completely in the current Social Security framework. The bill thereby provides a better and fuller safety net than the current system.
AARP argues that if workers are allowed to shift some of their payroll taxes into personal accounts, the current system would lose money and be weakened. But under the Ryan-Sununu bill, as in any personal account plan, trillions of dollars of new funds are put into an expanded and modernized Social Security framework, to ensure all promised benefits, and ultimately more, are paid. These funds come from the much higher investment returns that would be earned through the personal accounts and from federal general revenues not now used for Social Security.
AARP embraces a fallacy when it says this new funding means personal accounts are expensive. The transition financing under such reform represents the money going into the personal accounts of working people all over the country. With that money, and the accumulated investment returns, after just the first 15 years under Ryan-Sununu, workers would have accumulated $7.8 trillion in today's dollars in their personal accounts, according to the official score of the bill by the chief actuary of Social Security.
Moreover, in the process of such reform, the current $10.5 trillion unfunded liability of Social Security would be eliminated. Transition financing for personal accounts would be much less, eliminating this huge debt and leaving workers with trillions in personal account assets and higher benefits.
AARP advocates instead raising taxes and forcing all state and local government workers into Social Security. But these solutions are more of the AARP same. AARP went along with taxation of Social Security benefits adopted in 1983, and with 1993's sharp increase in those taxes. It has not supported repeal of the death tax and reduced capital gains taxes, which would both greatly benefit seniors. AARP represents its political interests in Washington, not retirees.
Republicans and other personal account advocates would be foolish to let AARP dictate policy on personal accounts. AARP is all bluff and bluster. For more than a decade, polls have consistently shown overwhelming public support for personal accounts -- in the range of two-thirds or more. This support cuts across party lines, and is particularly strong among Hispanics and African Americans. The support has been borne out in the past three election cycles, where candidates supporting personal accounts have won over and over again.
Let's not give in to Washington poseurs what we have already won at the grass roots. AARP wants a fight on this issue, and we are going to give it one.
I think AARP is just representing its members. After all, my parents (who are not members but are retired) despise me and my children with a passion and would like nothing better than to see us continue to pay ever increasing FICA taxes and never receive a penny of it.
OED
I turned 50 last year and never received an application from the gimme geezers. Maybe they knew better.
How will the President combat the lies and distortions from the 'rats?
The good news is that the young people of this country have noticed and are taking a look at what needs to be done. Let the debate begin.
By their actions, they're also presuming to represent AARP's potential future members as well. If their current constituency (those already at retirement age) doesn't want to privately invest their incomes, fine. But hear me AARP, let those under age 50 invest our own money!
The AARP is a socialist orgainization. I am one of those retarded people they say they represent and I told them where they could stick their orgainization.
If you are an IDIOT that is a member for $12.50 a year, you are going against yourself !
They are the largest LOBBYING group for Socialist LIBERALS !
AARP is just a big marketing organization. When you turn 50 they start sending you stuff, including a membership card. Unless you send it back and tell them to take you off their mailing list, you become a member. Before we got the junk turned off, they sent us all sorts of advertising for life and health insurance, travel, discounts, etc. They claim to represent millions but they don't. It's just a scam.
It is natural for man to think only of himself selfishly. Man's depravity naturally tempts him to think this way and not of the children.
Rather than look for solutions to insure the system for Seniors to come. The AARP balks at any change; like a curmudgeon tightly holding a money bag.
Thus the fight the President is in, is not only against a lobbyist group, but against sin nature. Thus I recommend strong prayers on his behalf, that President George W. Bush would be given wisdom over his enemies on high, and prevail over the slandering principalities and those, like a mangy lion, roar at him. May he be given courage and steadfastness to do battle for the senior citizens to come, honoring his parents and parents to come. In Christ's name , I pray.
I posted this on another thread yesterday. What'da ya think? Is it close or no?
As a Grandmother and Mother I protect my children and grandchildren and never want to be a burden on either one. I want to be independent all the days of my life.
And I want them to be independent financially as well.
I do beleive this is the wish of all parents and grandparents
AARP appears to be the only game in town who say they are representing the elderly and they have grown into a large lobby group in Washington, anyone hear of any Conservative lobby group that will replace AARP for Republican Conservative seniors??
If conservatives can defeat the liberal leadership of AARP, it will be a WATERSHED EVENT in lobbying history. I hope we can; the members of AARP are being LIED TO by the chiefs of that organization, and the youngest workers in America need to be protected from a Social Security system that will fail miserably unless our lawmakers ACT WISELY!
I must assume this is not the average situation. You must have done something to make them love you so.
In ending to this post. Since there will not be enough money collected in taxes within this nation because of just 40% of the total population working to support the rest, they are going to have to look for "outside" sorces for that tax money to equalize the 40% and get it up to at least 50/50. They cant even come cose to doing that under this present tax system and they know it. Yet since it is easier to raise the income tax or use it for a political campaign issue, they will drag their feet till it comes close to the people revolting.
EMPOWERING WORKERS: THE PRIVATIZATION OF SOCIAL SECURITY IN CHILE
NCPA - Social Security - Chile Led The Way On Social Security Privatization
They are going to destroy the relationship between the generations..Many older people just do not understand what has happened to Social Security. My Dad, who is in his late 80s understands. He told me he drew out the total of what he had paid in within one year. Of course, he began to draw many years ago. My Mother does not have the cognition to understand what the consequences of today's system will do to her grandchildren and greatgrandchildren. The children will become enslaved to the monmouth boomer generation who will begin drawing social security very soon. Therein lies revolution. AARP has become a liberal lobbying group and not much more. I would bet if you could go to each person with a membership in AARP, you would find that most are totally against their liberal stance and are unaware of what they are really trying to do politically..It is just a bunch of narcissists who do not care about the future. Anyone knows that when a person or a program is going bankrupt, something has to change. These liberals just cannot stand for people to rule their own lives. Power-mongering is their game and they cannot get power unless they take yours away.
The Grab-Handy Old Farts Club just doesn't want to deal with change. With SS, they have a secure lobbying position - and a stable power source - in D.C. and with the scared seniors they "represent". New SS would mean a complete change in the way they gain members and support in future.
Oh, but we are importing illegal youth to cover the shortage in SS funds created by the extinction of 60 million Americans.
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