Ann Pfenninger's opinion in the 3/1 issue Bay City Times found at www.milive.com speaks well to why the current social security system is failing. The Government, in their wisdom, increased entitlement programs using up the funds that should of been invested. Thus, the bureaucratic waste of further socializing our Country presents us with great consequence unless something is done and now.
Ann spoke of the Government paying back what they spent. Problem is we are the suppliers of the Feds funds. We are already down to 3 workers for each SSI recipient. To recover SSI to full funding will result in one worker for each retiree. That will not work and what we have now does not work. You realize that presently, 15% of your wage is now taken after you are charged income tax on all but what is a hidden payroll of social security matched by your employer of 7%?
We cannot trust the government to perform correctly with our funds by raising taxes. They will just spend it again. We must start placing it into accounts that are ours, to draw on personally or to be passed down to our children if we leave early.
Let's put this private account system in place and let this forced savings invest into the economy. Then watch the magic as our prosperity explodes. Imagine, a 10% return in retirement security compared to the negative return the current system will provide if at all. Take the current social security funds out of the general fund and replace it with a consumption tax which can eventually replace the income tax ,and reduce our SSI tax to it's intended purpose, an insurance against disability only. That is our money they are wasting by unconstitutional spending.
Revolutions have been fought over much less. Let's stop the power grabbing and work together. We the people do not want the failed system of socialism, so give it up. Work for a living and let's keep our money, not tax it away.
R. George Dunn
March 04, 2005
God speed in your correcting Social security from the welfare system back to the insurance system it was developed to be. Also, with intent be sure to remove social security funds from government borrowing for any other purpose of spending and put the spending back in the proper tax rolls. As to funding, it is simple, as is the cure..As you remember, Social security started with coverage on those 10 years past expected life and for those impeded from work ability. Place emphasis on returning the plan back to it's roots and remove it from it's present horrors.When the Great Society dipped into the social security funds, that is when our deficit darkness kicked into high gear. We became like a drunken sailor eating up the food storage needed to sustain our trip. This tax transfer could be the first step in moving the tax burden on social security over to a consumption tax with the deadline intent of removing income tax by a certain deadline.As to funding the current systems commitment of social security and at the same time moving the investment back to the employee for self determination by private investment, offer the fruits of the social security payroll tax on wages up to, say $20,000.00, into the similar thrift saving accounts like the federal employees are presently proving a healthy system. That would entail 15.5 % payroll investment into a retirement plan, which employers would be matching half of and make it voluntary for contributing up to 10% of payroll of employee. Extend the ceiling of the social security tax up to offset the interest created by the borrowing of funds to support this shortage. What will result is an enormous influx of investment funds into the economy and an large demand on employee supply thereby thrusting an needed inflation round with wages leading the healing influx. Time is of essence for that though. Remember, the social security tax should start to need reduction as the economy heats up and the illegal spending drain is removed from social security to a consumption sales tax on all but food and staples and housing.If the above is enacted, we will end up with an insurance plan for disability from being able to work up to an age of unable to work, no age of retirement on social security,, just ability insurance and spousal support failure. Making the first 15% of $20,000 investment to individual accounts will keep the government out of foolishly wasting it and provide a new hope for American workers. That would be $3,000.00 per year per worker who makes at least that much. That would be a blessing! That would be a fix!
Posted by R. George Dunn at 8:28 PM