Give Low Income Americans Exit Option From Social Security

Townhall.com ^ | July 28, 2014 | Star Parker

[yefragetuwrabrumuy]

Actually, just the opposite should be the case. Dismantle Social Security in an orderly manner, ending up with a non-government system that provides retirement exclusively to minimum-wage workers with no other means of retirement.

The way this begins is with workers just entering the workforce for the first time. If they work a minimum wage job, then they get a deal similar to what is given today, with about half their wages going into a *private* Social Security and Medicare type fund for their old age.

If they aren’t working in a minimum wage job, or they advance into a better paying job that offers retirement and medical, then the money they have paid into the system is put into their private account, “floating” with them no matter where they work.

But if they retire from the workforce getting other retirement and health care, they are not part of the system for minimum wage employees.

The next part of the dismantling is for those already in the system. If they are not minimum wage, then they get their FICA taxes paid returned to them as tax deductions. So they not only no longer pay FICA, they get their income taxes slashed as well.

The final part is for those currently getting Social Security and Medicare. If they still get taxable income, they can choose to take their SS check and Medicare health care; but if they refuse their SS check, they can get a larger tax deduction then their SS check is worth. They would have lost their SS money in taxes, anyway, so this is a good deal to them.

And if they can get a better health care deal than Medicare, so they don’t use their Medicare, they get a cash deduction reimbursement better than the Medicare money.

[George from New England]

Can any freeper point me to a web link that favors the worker and future SS beneficiary in regard to how to map out the best return for your working years. i.e. how many years to contribute, what thresholds matter, etc. We have self employment and employee contribution mixed over the decades.

The wife and I are 59 now and we dont trus’t govt sites to tell them truth.

Thanks in advance.

[rhoda_penmark]

“2) Not everyone had to pay. Until some time in the 70s it was voluntary enrollment.”

This is news to me.

I’ve been in the workforce since 1972 and never had any option whatsoever regarding FICA withholding.

[BuffaloJack]

I joined the workforce in 1962 and opted to not be part of social security. When my daughter was born in 1972 I was required to her a SSAN, because I could not claim her as a dependent on my income tax without it. I was also told that I could no longer even claim myself until I got a social security number. I assume that 1972 was the year they made it mandatory.

[rhoda_penmark]

Interesting...thanks for sharing.