Gas prices..

why even answer this idiot,he probably is on the dole...any way never put in an honest 8 in his life..he is the kind of person that wants to get a job,starting at top rate,while collecting his s.s, disability checks we all paid for! sturgon..

writesoon!

Just which idiot are you referring to?

No problems

The

Actually, Matt, he's right. In the run up to LBJs election in '64, Social Security was running large surpluses, which were to that point saved and invested strictly to pay for for future retiree benefits. The interest earned on the surplus funds meant that at the time FICA taxes were miniscule. When adjusted for inflation, benefits paid out at the time were much higher than they are now.

Costs of the Vietnam war, (which adjusted for inflation, dwarf what's being paid out for the current conflict) and Johnson's "Great Society" social programs were enormous. In order to avoid even greater tax increases than they had already enacted, the Democrats (who had a total lock on both houses of Congress, much greater than the Republicans have now) passed legislation that allowed the Feds to use Social Security surpluses to pay general expenses. This was done in in exchange for "IOUs". In other words, the Feds were to pay back the Social Security system in time to pay out benefit commitments. They've never paid it back.

As a result, to keep the system afloat there have been a HUGE increases in FICA / Medicare taxation over the ensuing 40 years. They now equal about 15% of every taxpayers income. Forget that charade about "your employer pays

As for taxation of benefits, in the late 80's the Democrats did pass legislation to tax the Social Security benefits of so-called "wealthy retireees", which turns out to be anyone retired who's not living in a carboard box and eating dry dog food. He's also correct that Democrats changed the law to permit paying out disability, Social Security, etc. to illegal immigrants. Not sure it was Carter that signed off on it.

IMHO, Republicans have been no better than Democrats on this issue, they've more than happy to raid Social Security, and any time you hear a politician talk about the "Social Security Trust Fund", or my favorite, the "Lock Box" they're just plain lying. The system is flat broke, there is NO trust fund, all there is is a bunch of debt that has to be paid by someone, probably our kids.

In actual fact, the "pay as you go" scheme used by the Government for Social Security is known as a "Ponzi Scheme" and is illegal for everyone else. If you did such a thing to run a business you'd end up in the slammer. I figure that's where the politicians that have screwed this thing belong, too.

For you youngsters out there, Social Security is THE WORST "investment" you'll ever make, and you have no choice in the matter. Do yourself a favor, invest everything you can in IRAs, 401(k)s, etc. It will be the only thing of substance you'll have when you retire. If you retire at 65 right now, no matter how much you've been taxed over the years, the most you collect is about $1,600 a month. Had the same money been invested, your returns would dwarf that, even adjusting for down markets, etc. Your government is LYING TO YOU when it says Social Security is a "good deal". Don't get played, save your money!

There is no doubt that it is a poor investment, but if a person has a spouse that has never worked, the max together is more like $2,400 a month coming from a single worker. Not a huge sum, but if you have no debts, you can get by on that amount.

I don't even like to think how much the contributions from both me and my employers would be worth today at even 5% interest. I started paying into Social Security when I was 12 years old. It's like trying to comprehend the Universe. I get a headache with either one.

Dick

You're talking about theSocial Security surplus loaned in Federal bonds to the Federal Government:

• By law, Social Security surpluses must be invested in federal securities. In other words, the only thing that the Social Security program can do with its surplus money is to loan it to the federal government. The federal government is required by law to pay this money back to the Social Security program with interest. [63] [64]

• According to projections, in 2015, the Social Security program will begin to spend more money than it collects in taxes. At that point, the Social Security program will begin to collect on the money that it has loaned to the federal government. [65]

• According to projections, between 2015 and 2037, the annual shortfalls of the Social Security program will be covered by the money that federal government will pay back to the Social Security program.

from

Wrong date I posted, 2015-2037.

How old is this information? I just wonder if it took into consideration the recent baby boom?

Which means we lose there too. We're paying for it either way.