[alisasny]

Then you pay much less since FICA does not apply to incomes over $72,600.

Darn, you just reminded me that my paycheck is going down this week : (

[ApesForEvolution]

Social Security is the largest Ponzi Scheme ever invented, sponsored and propagated by our very own government. Yet the only people getting rich are bureaucrats? Not even a good Ponzi Scheme...

[Libertarianize the GOP]

http://www.freerepublic.com/perl/bump-list

[Skooz]

Bump for later.

[Centurion2000]

So what if you took that money and invested it in Treasury Bonds, which are fully guaranteed by the Federal Government

Then the American Debt would be held by Americans and all of this B$ land confiscation for Federal lands would not be needed as collateral.

[Cicero]

Well, Bush is just fiddling around the edges, because frankly that's all he can do. He has inherited a system that was destined to go bankrupt almost from the year of its inception. Nothing to be done about that other than slash benefits for people who are already getting screwed. No politician will do that if he can possibly pass it on to someone down the line.

Still, it would be nice to have the option to put a small portion of your FICA tax into investments of your own choice.

Apparently, Bush has managed to grasp this third rail and avoid electrocution. The biannual Democratic ploy of calling everyone and playing them a recorded message that the Republicans are planning to steal their retirement money (when they aren't busy dragging blacks behind their pickups) evidently isn't working as well as it did for the past couple of decades. And Karl Rove is now saying that it will be good politics for Bush to press the issue publicly. Amazing.

[Henchster]

The Democrats want to keep SS just the way it is, and will block ANY changes like they are fighting to the death.

Why? Because Dems LOVE to spend the American workers' retirement money the minute they get their hands on it, instead of investing it for the workers' retirement like responsible money managers would. They're worse than children with money, and the LAST place retirement funds should be "managed."

Remember, members of Congress and the Senate do not have to pay SS taxes, they exempted themselves and created their own, separate, FUNDED pension plan for themselves, but the "little people" just get their retirement money spent, since government priorities are more important than workers' retirement funds.

SS is an illegal scheme to rob workers' of their retirement funds, that's all.

[gridlock]

If Bush wanted to make a really bold move, he would not go after Social Security, but he would go after FICA.

If he proposed eliminating the FICA tax and financing Social Security out of general funds, he could re-shape the tax system to make it more progressive and more inclusive at the same time.

Here's the plan. Eliminate the 14% FICA tax, and put a 10% income tax on the first dollar earned. This amounts to a 4% tax cut on the poorest worker. Graduate the tax by whatever scheme suits your fancy, topping out at 30%. This will actually represent a tax increase for the very highest level, because the entire income would be subject to taxation at that rate, not like the current system where FICA maxes out.

This scheme would make the tax system make a lot more sense, and would make each and every worker into a taxpayer. Right now, over half of the people in this country don't pay into the general fund, so they have very little interest in making government efficient or limiting governmental largesse. If every worker paid into the general fund, every worker would have the same incentive to make government as inexpensive as possible. This would be a much healthier political situation.

The fact that this scheme also eliminates the pernicious fiction that people are paying into Social Security, so they should be able to get their own money back out, is also a good thing. This was never true, but the high FICA tax is what has made rational discussion of Social Security nearly impossible. Eliminating this dedicated tax would make it feasible to mold a system that provides a safety net for retirees without bankrupting the nation.

[poet]

"So what if you took that money and invested it in Treasury Bonds, which are fully guaranteed by the Federal Government, and make an average return of about six percent a year. You would be vastly richer upon retirement"

In view of the fact that they can't handle SS monies received in the first instance, what makes the writer so confident that Treasury Bonds are a valid guarantee?

And the beat goes on.

BTW, SS recipients recieved a 1.4% increase this year and 2.6% last year, so why the whining? After all, our "conservative" republican controlled has gave themselves a $4,900 increase in 2002 and the senate did the same for 2003, all, I might add, at the midnight hour so as to avoid publicity.

We should all be thankful for the little "crumbs" we receive and for the "crumbs" who give us our bread.

FReegards

[kabar]

Question
What is the Social Security contribution rate for 2003?

Answer
The 2003 contribution rate, also known as FICA tax, for employees and for self-employed people are:
(For comparison, 2001 and 2002 rates are also shown.)

2001 2002 2003
Employee 7.65% 7.65% 7.65%
Self-Employed 15.30% 15.30% 15.30%


Maximum Earnings Taxable: 2001 2002 2003
Social Security (OASDI only) $80,400 $84,900 $87,000
Maximum Tax Withheld $4,984.80 $5,263.80 $5394
Medicare (HI only) No Limit No Limit No Limit

NOTE: The 7.65% rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.2% on earnings up to the applicable maximum taxable amount (see below). The Medicare portion (HI) is 1.45% on all earnings

The taxable caps go up and up faster than inflation. There is no cap on Medicare.

[MurryMom]

The candidate had won my eternal respect some months before by proposing that workers be allowed to redirect a portion of their Social Security taxes into private investment accounts.

That's what little Dumbya SAID, but what has he DONE since being elected to allow workers to redirect a portion of their SS taxes into a private investment account? An even better question is "How much money has little Dumbya budgeted for the purpose of setting up private investment accounts to supplement their SS paymments?"

Hint: You answered both questions correctly if your answers include the following words: Zero, zilch, nada, nothing.

[HighRoadToChina]

"The amount of money you receive when you retire is equivalent to a two percent annual return on your taxes."

If this statement was even close to reality (you don't earn 2% APR on your taxes as #59 explains so clearly), 2% is still 1-2% less than the annual rate of inflation which has been around 3-4% for the past 20-30 years. So that means, your "investment" in SS (which is forced upon the American people by the force of law) is a wopping negative 1-2%.

SS is truly reflective of its initials. The greatest Ponzi scheme in the world.

[WhiteGuy]

Social Security "has been called the 'third rail of American politics' -- the one you're not supposed to touch because it shocks you. But, if you don't touch it, you can't fix it. And I intend to fix it."

So spoke George W. Bush

[Bob J]

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