[Vision2020] Wanna know why social security is hurting?

[Ron Force]

Yeah, but if he retired today at 66, he'd only get $2366/month, the same as 
someone making the max SSN tax ($106,000 yr). One of the principles behind SS is 
that the benefits have some relation to the amount paid in over a lifetime; the 
cap on benefits is related to the to the cap on taxes. Even strong supporters of 
SS recognize that if SS becomes a pure welfare program, its days are numbered.   
SS benefits are mildly progressive, low income folks get a bigger return than 
those at the upper end. Disability and death benefits are highly progressive  As 
the Congressional Budget Office points out:

The benefits paid to retired workers, which account
for about three-quarters of total benefits, are also
progressive, but less progressive than Social Security
benefits overall. The Social Security benefit formula is
designed to provide beneficiaries who had lower lifetime
earnings with monthly benefits that are higher, as
a percentage of their lifetime average earnings, than
those received by higher-earning beneficiaries. That
progressivity in the benefit formula is only partly offset
by the fact that higher-earning individuals tend to live
longer and thus collect benefits longer.
http://www.cbo.gov/ftpdocs/77xx/doc7705/12-15-Progressivity-SS.pdf

On the other hand, the idea that's been floated to deny SS benefits to the 
"rich" wouldn't affect the trust fund much, since they're so few of the truley 
rich. In order to balance the trust fund after 2037, you'd have to deny or 
severely reduce benefits to those who averaged more than $66,000/yr.

 Ron Force
Moscow Idaho USA




________________________________
From: Chuck Kovis <ckovis at turbonet.com>
To: Vision 2020 <vision2020 at moscow.com>
Sent: Fri, January 28, 2011 7:36:01 AM
Subject: [Vision2020] Wanna know why social security is hurting?

 
http://online.wsj.com/article/SB10001424052748704268104576108390332589096.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsTop

 
 
This guy made $5,000,000,000.00 last year and pays  $6,520.00 in social security 
taxes.   As a percent of his income it is  .000001304 %.   An overpaid teacher 
making $35,000.00 per year pays  6.2% of his/her income in social security tax 
or about $2,170.00.  Oops, I  forgot, shouldn't point this out.  He deserves to 
keep his hard earned  money cause he's a "risk-taker" and that's what makes this 
country great.   And, in case anyone is wondering, (Gary) I think this bastard 
should be taxed  like hell.  Chuck Kovis


      
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