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Social Security going broke

Posted by mrskjun 9 (My Page) on
Tue, Apr 24, 12 at 7:08

Seems like Social Security is going broke sooner than we thought. I suppose the payroll tax cut is helping that along. I know that many here don't care for Paul Ryan's plan for fixing the problem. But can someone tell me what Obama's plan is for fixing it?


Follow-Up Postings:

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RE: Social Security going broke

Better get your share as soon as eligible. I did...


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RE: Social Security going broke

I better plan to die early then.


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RE: Social Security going broke

  • Posted by ohiomom 3rdrockfromthesun (My Page) on
    Tue, Apr 24, 12 at 7:41

His plan would allow workers to invest part of their payroll taxes in personal investment accounts.

....could you explain to me how this would "fix" social security ?


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  • Posted by ohiomom 3rdrockfromthesun (My Page) on
    Tue, Apr 24, 12 at 7:42

...to quick!

I meant "Ryan's plan" that the OP refers to.


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RE: Social Security going broke

We'd gladly give up our share if we can stop contributing right now!


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RE: Social Security going broke

According to my favorite congressman, SS is just fine. Don't buy into the lies and deception of the media or the government. It's a ploy to keep hard working, paying Americans, weak and abiding.

Washington, Apr 23 -

Washington D.C. (April 23, 2012) � Congressman Dennis Kucinich (D-OH) today welcomed the 2012 Social Security Trustees Report (PDF)which shows that Social Security is strong.

"The Trustees� report shows that Social Security is strong. It demonstrates that Social Security is 100% fully funded through 2033. We can push that date back even longer by simply raising the caps on income subjected to Social Security.

"Time and again there have been attempts by both sides of the aisle to bring Social Security into budget debates in order to scare Americans into accepting an unnecessarily reduced standard of living. The 2012 Social Security Trustees Report should be taken as an affirmation of the strength of Social Security, not as an excuse to scare senior citizens," said Kucinich.


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RE: Social Security going broke

"But can someone tell me what Obama's plan is for fixing it?"

You may not like the Presidents plans relative to SS and retirement for seniors but the details are easy enough to obtain if you really care. Then again this isn't likely one of your favourite WEB sites.....

Here is a link that might be useful: The Obama-Biden Plan to Protect SS


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RE: Social Security going broke

I hope he is right brush. The question was, what is Obama's plan for Social Security?


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RE: Social Security going broke

The short answer is at the website Chase linked to. Obama proposes to save Social Security by removing the income cap which would subject more income to the payroll tax. I suspect many Dems and Repubs in Congress might also consider an income means test to limit payouts if you are rich.

However, the major thrust for Republicans to "save" Social Security seems to be cutting guaranteed benefits by upping the retirement age AND privatizing SS for young workers. While the wealthy and Wall Street love the idea of cutting lose seniors to struggle on their own while feasting on privatized retirement accounts, neither of those fixes help low and middle income workers many who can't work longer and many others of modest earnings whose ability to retire comfortably would be subject to the ups and downs of the stock market which we all know can turn almost overnight. What you will see with Republican plans is a future of continued erosion of financial security for seniors (cuts in SS and Medicare) and increase in poverty among seniors. But hey on the upside, the wealthy will do very well from the Ryan Romney Plan.


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RE: Social Security going broke

Let's see if ther will be an acknowledgement & reference beyond slight consideration or just slight for Chase link.


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RE: Social Security going broke

It always amaze me when a link is offered but not read. Just will not come out of that bubble to see the other side.

Why bother to ask what is Obama Plan if you do not care to read the Plan?


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RE: Social Security going broke

  • Posted by ohiomom 3rdrockfromthesun (My Page) on
    Tue, Apr 24, 12 at 10:48

Science: GOP open minded :)


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RE: Social Security going broke

One thing I have discovered on this forum is that when you ask a tough question, or offer concrete evidence which disputes offered opinions, there is seldom an acknowledgement or answer. The best you can expect is some sarcastic comment that moves the conversation nowhere.

So I now take the lack of response to mean they have no credible response. Unfortunately, I also know the facts presented are as ignored as the questions.


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RE: Social Security going broke

I suspect many Dems and Repubs in Congress might also consider an income means test to limit payouts if you are rich.

*

"Rich" definitions aside, what is right about taking money forcibly from people with the promise that it will be there for them in old age, and then taking their portion and redistributing it to others?

Why bother to make sacrifices and save extra so you won't be entirely dependent on the government only to lose it?


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RE: Social Security going broke

Most of the article Chase linked to discusses changes to retirement plans other than Social Security.

Social Security is only mentioned in the first paragraph. Obama and Biden propose to save Social Security by adding a tax of 2 to 4% (includes both the employer's and employee's portion) for those earning over $250,000.

Personally, I rather not see them extend the current Social Security tax cut.

I'm not a fan of privatizing Social Security.

Everyone in the work force need to be told annually that Social Security was never meant to provide 100% of one's income in retirement. I think they should have to sign a statement that acknowledging this in January of every year.


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RE: Social Security going broke

Because it is Social Security INSURANCE - there to prevent people from slipping in to poverty. SS is not a 401 K or pension. You also don't get the insurance money you pay for health coverage if you don't get sick. That's how insurance works, Demi.


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RE: Social Security going broke

Why should earned income over $110,000 be excluded?

Or for that matter, income from capital gains and dividends?

Thats just another tax break for the wealthiest.


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RE: Social Security going broke

The problem is that the cap hasn't been adjusted in 30 years and in the years since less income has stagnated or declined for working people and the Middle Class such that their SS payments are insufficient to maintain the system. The result of the past 30 years is income inequality and a SS income cap that takes in less income now than it used to.

From the Financial Times:

A history lesson and a few facts are in order. In 1983, a commission headed by future Federal Reserve Board chairman Alan Greenspan reached a bipartisan compromise that was soon signed by President Ronald Reagan. It saved Social Security for the Greatest Generation just as those Americans were entering retirement. The deal gradually raised the payroll tax rate, indexed the ceiling on income subject to taxation, and lifted the retirement age to 67 - but not until the middle part of the Baby Boom was scheduled to enter its golden years.

The deal was a spectacular success. Not only did it save Social Security for the World War II generation, by the end of the 1990s Social Security was generating huge surpluses for the government, which continue to this day. Alas, the income tax cuts enacted in 2001 and 2003 sent that money (and more) back out the door.

A least-noted aspect of that '83 plan had to do with the level of wages subject to taxation. The cap was designed to hit about 90 percent of all wage and salary income (interest, dividends and capital gains are not subject to the payroll tax). The architects of the compromise calculated the revenue would be sufficient to maintain the system for the next 75 years, or to 2058. That was about the time when the last of the 77 million Baby Boomers would be lowered to a place where they could no longer draw benefits.

But a funny thing happened on the way to the future. Though the cap rose with inflation, the total amount of wages subject to the tax did not. As more and more of the total income pie went to high earners, less and less of total wages wound up being taxed. In fact, by 2008, the total share of wages subject to taxation had fallen from 90 percent to 83.8 percent of the total. Actuaries at the Social Security Administration, in an email response, said they estimate the total this year will be 83.6 percent of the total.

It's also important to note that this declining share of taxed income wasn't caused by more people earning salaries above the cap. According to SSA data, about 6.3 percent of all wage and salary workers in 1983 had earnings above the cap. By 2008, that had fallen to 6.0 percent. In other words, fewer people are earning a bigger share of total income.

I asked the actuarial office what the cap would have to be today to have the tax hit 90 percent of all wages, the benchmark anticipated by Alan Greenspan, Ronald Reagan, the late Sen. Pat Moynihan, D-N.Y., and the other architects of the 1983 compromise. "$191,100," the office replied with its customary precision. "If the increase began in 2012 and was fully phased in by 2017, the estimated trust fund exhaustion year would be 2049."

According to the last Social Security trustees - report, the current data for the trust fund's exhaustion is 2037. Clearly, raising the tax cap won't solve all Social Security's 75-year imbalance. But if the nation is committed to the goal of maintaining a stable income floor for all senior citizens, regardless of how well they did during their working years, then raising the cap is a good place to start, especially given the rise in income inequality in the U.S. over the last 30 years.

Here is a link that might be useful: SS Cap hasn't kept up with Income Inequality


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'''''Social Security going broke

I would gladly see a means test put in place in Canada...and yes I would be one of those that would pay in and not take out.

I'm OK with contributing to a social safety net that helps those who have worked in jobs that pay wages so low that saving for their old age is impossible. I benefit from the work these people do and the least I can do is ensure that they don't live in poverty when retired.


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(((( Social Security going broke

Jlhug, I did say that the information was " plans relative to SS and retirement for seniors".

To your point of reminding people that SS was never meant to provide 100% of retirement income, the two go hand in hand.


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RE: Social Security going broke

Chase is a wise person-even the rich benefit from a stable non-starving population-it is so expensive to maintain those parameter walls with the broken glass on top and the guards-you never know when they are going to wake up to the fact that you are going to throw them outside the wall when their useful work life is over and sell you to the starving mobs.


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RE: Social Security going broke

Or when the maid starts coughing, spreading multi-drug resistant tuberculosis.


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RE: Social Security going broke

Chase, I absolutely agree that SS and other retirement plans should compliment each other.

Sorry I misread your sentence.


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