Comments on: Why Social Security Is Going Broke: Two Simple Charts http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html Personal Finance and Investing Blog Sun, 12 Feb 2012 01:43:13 +0000 hourly 1 By: ernie http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-169981 ernie Thu, 11 Nov 2010 02:07:19 +0000 http://www.mymoneyblog.com/?p=4583#comment-169981 Don't put the blame on the folks who have spent their lives putting in to the system. Put the blame on the government which has stolen the social security money and used it for other purposes over the decades. LBJ's WAR ON POVERTY was and still is financed by this money. Mentioned elsewhere here, Berinie Maddoff ran the same scam. Putting the blame on the baby boomers . A talking point for every right wing tax cheat in Washington. If the average American knew about the fair and just retirement system the people of Europe receive, there would be a revolt in this country. They have taken our jobs, now they want our social security money. let's not have these Maddoff's put a guilt trip on us. Tax the rich banker politicians and let's get back at least some of the money that has been stolen from the account. Don’t put the blame on the folks who have spent their lives putting in to the system. Put the blame on the government which has stolen the social security money and used it for other purposes over the decades. LBJ’s WAR ON POVERTY was and still is financed by this money. Mentioned elsewhere here, Berinie Maddoff ran the same scam. Putting the blame on the baby boomers . A talking point for every right wing tax cheat in Washington. If the average American knew about the fair and just retirement system the people of Europe receive, there would be a revolt in this country. They have taken our jobs, now they want our social security money. let’s not have these Maddoff’s put a guilt trip on us. Tax the rich banker politicians and let’s get back at least some of the money that has been stolen from the account.

]]> By: Bob http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-169794 Bob Thu, 04 Nov 2010 00:05:28 +0000 http://www.mymoneyblog.com/?p=4583#comment-169794 estcstm3 100 a month?....I pay 500 a month estcstm3 100 a month?….I pay 500 a month

]]> By: Tracy http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-167154 Tracy Wed, 04 Aug 2010 05:36:07 +0000 http://www.mymoneyblog.com/?p=4583#comment-167154 I feel that social security should be something we get to choose to contribute to. Looking at my current pay check as of today they have taken $2199.37 out of my earnings for 2010. When I am retirement age if they do not have the funds to secure benefits and monthly support then I think we as contributing workers should be able to request a refund and they should have to pay us every penny we paid in with interest. I could have done a lot better job investing this money so that if something happens to me my children can inherit the funds. I agree that health care at any age is important and can be financial suicide butt there has to be a better plan than what's happening now. I feel that social security should be something we get to choose to contribute to. Looking at my current pay check as of today they have taken $2199.37 out of my earnings for 2010. When I am retirement age if they do not have the funds to secure benefits and monthly support then I think we as contributing workers should be able to request a refund and they should have to pay us every penny we paid in with interest. I could have done a lot better job investing this money so that if something happens to me my children can inherit the funds. I agree that health care at any age is important and can be financial suicide butt there has to be a better plan than what’s happening now.

]]> By: Tary http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-139771 Tary Thu, 05 Nov 2009 01:06:35 +0000 http://www.mymoneyblog.com/?p=4583#comment-139771 None of the above is true. Social Security doesn't rely on younger workers fueling the payout for retirees. In fact the Social Security system has been remarkably well run to the point that if nothing were to change the system could continue to pay out through 2055 - well past the so called 'Baby Boomer' influx. The charts are pretty, but they don't show the fact that the bulk of the money in the Social Security system is protected in trust funds set aside years ago, and growing. The people crying wolf over the Social Security being "broke" are of two sorts: 1) those with an agenda to get government out of the social security business and 2) those who believe them and are too lazy to do their own research. None of the above is true. Social Security doesn’t rely on younger workers fueling the payout for retirees. In fact the Social Security system has been remarkably well run to the point that if nothing were to change the system could continue to pay out through 2055 – well past the so called ‘Baby Boomer’ influx. The charts are pretty, but they don’t show the fact that the bulk of the money in the Social Security system is protected in trust funds set aside years ago, and growing.

The people crying wolf over the Social Security being “broke” are of two sorts: 1) those with an agenda to get government out of the social security business and 2) those who believe them and are too lazy to do their own research.

]]> By: Rdan http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-137887 Rdan Fri, 09 Oct 2009 08:25:43 +0000 http://www.mymoneyblog.com/?p=4583#comment-137887 Well folks, without a look at the numbers and raw data easily available, many of the comments above are simply inaccurate. The premise of the post is simply wrong...worker to retiree ratio numbers are fine and will work based on current projections. The longevity figures are already figured into the projections. Read the trustee report itself, and do your own math. Ponzi scheme is a term that is loosely used here. SS is workers paying for their own retirement insurance. SS will be a solid benefit for young people to help insure a miminum amount of retirement security of their young selves to their older selves. Claims that say a private investment gets more are possible, but do not get ill or have a disaster in your life. Gee mary, many more illegals pay in but are not eligible. Lucky you. Well folks, without a look at the numbers and raw data easily available, many of the comments above are simply inaccurate. The premise of the post is simply wrong…worker to retiree ratio numbers are fine and will work based on current projections.

The longevity figures are already figured into the projections. Read the trustee report itself, and do your own math.

Ponzi scheme is a term that is loosely used here. SS is workers paying for their own retirement insurance. SS will be a solid benefit for young people to help insure a miminum amount of retirement security of their young selves to their older selves. Claims that say a private investment gets more are possible, but do not get ill or have a disaster in your life.

Gee mary, many more illegals pay in but are not eligible. Lucky you.

]]> By: mary sparkman http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-137883 mary sparkman Fri, 09 Oct 2009 04:29:54 +0000 http://www.mymoneyblog.com/?p=4583#comment-137883 how many illegals get our socicial security that never worked for it?? how many illegals get our socicial security that never worked for it??

]]> By: Shane http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-135537 Shane Fri, 28 Aug 2009 00:37:39 +0000 http://www.mymoneyblog.com/?p=4583#comment-135537 I like that in due time the greed of the American populace will overwhelm itself. Politics to me used to be so fascinating. However now it’s only confusing and in many cases dishonorable (if what I am not confused about is true LOL) . I don’t know a politician who could affiliate themselves with SS and get a good job done and turn things around (not that I know any politicians, however I know much about their work). I think that my method of living isn’t perfect but if people who live in rags can use their resources to the best of their usage, and those who live in glass houses weren’t the epitome of blind. Things could change. The socialized money makers are putting it in their pockets, while the socialized needy have no entitlement or occupation. The greed is everywhere. Regardless of thought, its due to greed that so many are using the SSI system However I believe The USA to be such a “money power-house” that these issues will work themselves out In the long run. However I think there will be casualties, the president… I don’t trust him, and I haven’t kept tabs on his work. But let’s hope he knows what he’s doing… im not going to hate him, I think he’s looking out for us to the best of his ability with some possible selfish agendas. Hes looking out for the health of the country I think, and is not to extremely concerned about the “immediate happiness” of the common wealth???? I like that in due time the greed of the American populace will overwhelm itself.
Politics to me used to be so fascinating. However now it’s only confusing and in many cases dishonorable (if what I am not confused about is true LOL) . I don’t know a politician who could affiliate themselves with SS and get a good job done and turn things around (not that I know any politicians, however I know much about their work).
I think that my method of living isn’t perfect but if people who live in rags can use their resources to the best of their usage, and those who live in glass houses weren’t the epitome of blind. Things could change. The socialized money makers are putting it in their pockets, while the socialized needy have no entitlement or occupation. The greed is everywhere. Regardless of thought, its due to greed that so many are using the SSI system
However I believe The USA to be such a “money power-house” that these issues will work themselves out In the long run. However I think there will be casualties, the president… I don’t trust him, and I haven’t kept tabs on his work. But let’s hope he knows what he’s doing… im not going to hate him, I think he’s looking out for us to the best of his ability with some possible selfish agendas. Hes looking out for the health of the country I think, and is not to extremely concerned about the “immediate happiness” of the common wealth????

]]> By: Rdan http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-134094 Rdan Tue, 04 Aug 2009 14:14:56 +0000 http://www.mymoneyblog.com/?p=4583#comment-134094 Donald, I may have misinterpreted or been too sensitive. Welfare Peterson language is bad. Welfare as in the constitution would seem to be a positive, wouldn't it. I have no quarrel with the term in context...the SS fight is still ferocious and much under the radar, so I am more careful as it is used as a code word. If interested, I would recommend going the <a href="http://angrybear.blogspot.com" rel="nofollow">Angry Bear</a> and then on the Bruce Webb's series on Social Security, which is one of the very few that are detailed and quantified. Treatment at Money Blog is of necessity short and incomplete. Donald,

I may have misinterpreted or been too sensitive. Welfare
Peterson language is bad. Welfare as in the constitution would seem to be a positive, wouldn’t it.

I have no quarrel with the term in context…the SS fight is still ferocious and much under the radar, so I am more careful as it is used as a code word.

If interested, I would recommend going the Angry Bear and then on the Bruce Webb’s series on Social Security, which is one of the very few that are detailed and quantified. Treatment at Money Blog is of necessity short and incomplete.

]]> By: Donald http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-134090 Donald Tue, 04 Aug 2009 13:53:07 +0000 http://www.mymoneyblog.com/?p=4583#comment-134090 Rdan, So you do think welfare is a dirty word. My only point was that a lot of people who complain about government largesse for undeserving dead-beats are themselves recipients of government checks over and above the money they paid in. Sure, insurance works the same way. Maybe if we all started to think of all taxes as insurance, people would calm down. My local property taxes are insurance against crime, fire, unsafe water, etc. In more advanced countries taxes also function as health insurance. Here, we like to think we are all independent actors, and it's just not true. Rdan,
So you do think welfare is a dirty word.

My only point was that a lot of people who complain about government largesse for undeserving dead-beats are themselves recipients of government checks over and above the money they paid in. Sure, insurance works the same way. Maybe if we all started to think of all taxes as insurance, people would calm down. My local property taxes are insurance against crime, fire, unsafe water, etc. In more advanced countries taxes also function as health insurance. Here, we like to think we are all independent actors, and it’s just not true.

]]> By: Rdan http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-134005 Rdan Sun, 02 Aug 2009 13:49:13 +0000 http://www.mymoneyblog.com/?p=4583#comment-134005 Social security is insurance, not a defined benefit plan (which are in serious underfunding as a whole), so if you are unlucky you will not starve. If you check the research most people's 401ks are not managed well as a whole, so your individual succes in investing is fine but will not be good for millions of people not so gifted. If you invest well but are unlucky at retirement, losing income or paying medical bills from your investments, then you will be glad you have a backup plan in Social Security. Social security is insurance, not a defined benefit plan (which are in serious underfunding as a whole), so if you are unlucky you will not starve.

If you check the research most people’s 401ks are not managed well as a whole, so your individual succes in investing is fine but will not be good for millions of people not so gifted. If you invest well but are unlucky at retirement, losing income or paying medical bills from your investments, then you will be glad you have a backup plan in Social Security.

]]> By: Rdan http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-134004 Rdan Sun, 02 Aug 2009 13:40:39 +0000 http://www.mymoneyblog.com/?p=4583#comment-134004 Warren, You better go check your pension fund. Both public and private defined benefit plans are in a lot of financial trouble and probably will be one of the next surprises in the news, although it is clear and has been. Pension funds, in addition, are some of the major losers in the current CDS and CDO toxic asset fiasco....many lost 25-30% value. Your 401k, if needed now, probably is in not so good shape for withdrawing. Please read more or continue to be fooled. Better call someone for information. Social Security needs no major adjustments now...you could make some in ten years and be fine, just a minor change up or down as needed. You are buying into the infinite horizon nonsense and are being scared by big scarey numbers which have no meaning even as projections. Social Security is still bringing in more than payout, and will for quite some time. Then you might want to not be a deadbeat and pay back borrowed money...afterall, it paid for other parts of the government you are using to your advantage. Warren,

You better go check your pension fund. Both public and private defined benefit plans are in a lot of financial trouble and probably will be one of the next surprises in the news, although it is clear and has been. Pension funds, in addition, are some of the major losers in the current CDS and CDO toxic asset fiasco….many lost 25-30% value. Your 401k, if needed now, probably is in not so good shape for withdrawing. Please read more or continue to be fooled. Better call someone for information.

Social Security needs no major adjustments now…you could make some in ten years and be fine, just a minor change up or down as needed. You are buying into the infinite horizon nonsense and are being scared by big scarey numbers which have no meaning even as projections.

Social Security is still bringing in more than payout, and will for quite some time. Then you might want to not be a deadbeat and pay back borrowed money…afterall, it paid for other parts of the government you are using to your advantage.

]]> By: Rdan http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-134003 Rdan Sun, 02 Aug 2009 13:28:19 +0000 http://www.mymoneyblog.com/?p=4583#comment-134003 Donald, Social Security is paid for by workers for worker retirement as insurance. It is self-paid. It is not welfare by careful design. The cap has the danger of making the rich pay more than necessary to fund an imaginary intolerable gap made up be Peterson and Co., and sadly you are a believer. It is one way but certainly not necessary. Where you get the figures from payment in/payment out is just silly. Look it up first before you hit that submit button. I bet you are hung up on the word payroll tax...it is pay go and when you are old it you might be lucky if your kids do the same favor. SS does not draw on income taxes or other taxes, and will not have to in the pay go aspect. If you mean that the overpayments to this dedicated fund that you and I borrowed to pay for other services in other parts of the government to keep taxes down now is a problem, it is, but ious to China could be defaulted as easily instead of Social Secuity if you must default, which is unwise and not necessary. Are you suggesting you are a deadbeat borrower? Remember, banks do not have a lockbox, never have. They loan the money out with interest and expect to be re-paid. It is quite normal and shouldn't worry you. But to say it is welfare is gross ignorance and easily disproved with about an hours reading the Trustees report....hmmm, about 80 pages. Donald,

Social Security is paid for by workers for worker retirement as insurance. It is self-paid. It is not welfare by careful design. The cap has the danger of making the rich pay more than necessary to fund an imaginary intolerable gap made up be Peterson and Co., and sadly you are a believer. It is one way but certainly not necessary.

Where you get the figures from payment in/payment out is just silly. Look it up first before you hit that submit button. I bet you are hung up on the word payroll tax…it is pay go and when you are old it you might be lucky if your kids do the same favor.

SS does not draw on income taxes or other taxes, and will not have to in the pay go aspect. If you mean that the overpayments to this dedicated fund that you and I borrowed to pay for other services in other parts of the government to keep taxes down now is a problem, it is, but ious to China could be defaulted as easily instead of Social Secuity if you must default, which is unwise and not necessary. Are you suggesting you are a deadbeat borrower?

Remember, banks do not have a lockbox, never have. They loan the money out with interest and expect to be re-paid. It is quite normal and shouldn’t worry you. But to say it is welfare is gross ignorance and easily disproved with about an hours reading the Trustees report….hmmm, about 80 pages.

]]> By: Donald http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-133987 Donald Sat, 01 Aug 2009 22:17:23 +0000 http://www.mymoneyblog.com/?p=4583#comment-133987 Of course SS is welfare, otherwise you would only get out what you put in plus interest. Retirees exceed that amount in a few years at most. What we need to get over is the idea that welfare is a dirty word. If you think it is a bad thing, return all your ill-gotten SS payments to help pay off the national debt, or give them to charity, and go back to living by the sweat of your brow, eighty-something and all. Of course SS is welfare, otherwise you would only get out what you put in plus interest. Retirees exceed that amount in a few years at most. What we need to get over is the idea that welfare is a dirty word. If you think it is a bad thing, return all your ill-gotten SS payments to help pay off the national debt, or give them to charity, and go back to living by the sweat of your brow, eighty-something and all.

]]> By: Rdan http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-133951 Rdan Fri, 31 Jul 2009 13:29:20 +0000 http://www.mymoneyblog.com/?p=4583#comment-133951 People come in and out of SSI. I am sure there are some who should not receive benefits, but to say it is only obtained by those who have never paid in makes your statement false. Figures can be obtained at the SS.gov site. Why not be angy about Goldman Sachs and AIG bonuses? Time better spent. Social Security is an insurance program, and has ious given out just like a bank loans out your money...no lockbox exists anywhere except physical gold mostly. It is a pay go system that works well. The trust fund issue is silly, but important....one way to look at it was that of a loan to fund the tax cuts as spending increased. People come in and out of SSI. I am sure there are some who should not receive benefits, but to say it is only obtained by those who have never paid in makes your statement false. Figures can be obtained at the SS.gov site.

Why not be angy about Goldman Sachs and AIG bonuses? Time better spent.

Social Security is an insurance program, and has ious given out just like a bank loans out your money…no lockbox exists anywhere except physical gold mostly. It is a pay go system that works well. The trust fund issue is silly, but important….one way to look at it was that of a loan to fund the tax cuts as spending increased.

]]> By: Citizen http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-133934 Citizen Fri, 31 Jul 2009 03:43:46 +0000 http://www.mymoneyblog.com/?p=4583#comment-133934 What I have always wanted to know is how much of our tax dollars are paid out to SSI. SSI, for those who don't know, is welfare. SSI is for people who have never worked or paid into the system It was initially set-up for the blind and severely disabled and has morphed over the years to support people with things like anxiety, obsesity and a myriad of other things. I personally know many folks, being a social worker, like addicts who collect up to 1 thousand a month. I also know someone who has over 500 thousand in a bank and continues to collect SSI legally. I believe there are folks who truly need help but that we should reform the system so that only people who really need the help can get it. It is really hard for me to think that after paying into the system for 40 years it might not be available when I need it and then to see so much money going to people who really should be working and supporting themselves. It also makes me angry when people say that this is a welfare system for seniors when many of us have paid into it all of our working lives. What I have always wanted to know is how much of our tax dollars are paid out to SSI. SSI, for those who don’t know, is welfare. SSI is for people who have never worked or paid into the system It was initially set-up for the blind and severely disabled and has morphed over the years to support people with things like anxiety, obsesity and a myriad of other things.
I personally know many folks, being a social worker, like addicts who collect up to 1 thousand a month. I also know someone who has over 500 thousand in a bank and continues to collect SSI legally.
I believe there are folks who truly need help but that we should reform the system so that only people who really need the help can get it.
It is really hard for me to think that after paying into the system for 40 years it might not be available when I need it and then to see so much money going to people who really should be working and supporting themselves.
It also makes me angry when people say that this is a welfare system for seniors when many of us have paid into it all of our working lives.

]]> By: Joe http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-133831 Joe Wed, 29 Jul 2009 16:25:40 +0000 http://www.mymoneyblog.com/?p=4583#comment-133831 This article doesn't even touch the main issue...that there is NO Social Security trust fund. It's a bunch of Treasury IOU's, period. We'd have to sell treasuries or raise taxes to replace those iou's. It's not possible to owe oneself money, otherwise we would all be fabulously wealthy. If you want more information, you should take the Crash Course which talks about this and many other issues we are facing, medicare, medicaid, energy, etc. www.chrismartenson.com This article doesn’t even touch the main issue…that there is NO Social Security trust fund. It’s a bunch of Treasury IOU’s, period. We’d have to sell treasuries or raise taxes to replace those iou’s. It’s not possible to owe oneself money, otherwise we would all be fabulously wealthy. If you want more information, you should take the Crash Course which talks about this and many other issues we are facing, medicare, medicaid, energy, etc. http://www.chrismartenson.com

]]> By: Rdan http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-133737 Rdan Tue, 28 Jul 2009 14:01:37 +0000 http://www.mymoneyblog.com/?p=4583#comment-133737 I am saddened by the posts lack of reseach and shallow treatment of statistics. I can see the Trustee report was probably ignored. The boomers already paid and have ious to prove it, with 1983 as the change in plan. Default is a serious consideration? The worker/retiree ratio here is miscontstrued. A prediction for 2035 is of little value, and additionally probably ignores immigration. Even if the trust fund is not re-paid social security is in okay shape. Small incremental changes are all that is needed. This is one of the more shallow posts on the subject...scarey reading but no substance. I am saddened by the posts lack of reseach and shallow treatment of statistics. I can see the Trustee report was probably ignored. The boomers already paid and have ious to prove it, with 1983 as the change in plan. Default is a serious consideration?

The worker/retiree ratio here is miscontstrued. A prediction for 2035 is of little value, and additionally probably ignores immigration. Even if the trust fund is not re-paid social security is in okay shape. Small incremental changes are all that is needed.

This is one of the more shallow posts on the subject…scarey reading but no substance.

]]> By: Ouida Vincent http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-133733 Ouida Vincent Tue, 28 Jul 2009 13:08:58 +0000 http://www.mymoneyblog.com/?p=4583#comment-133733 What your article doesn't mention and is equally important is that the creators of Social Security only guaranteed solvency of the program through 1980. They were very concerned that the government would see a huge pile of money and begin spend it or borrow against it to offset deficits. In other words in 1980 the program should have been overhauled but was not. All of this is spelled out very plainly on the SSA's website under historical documents. They have the original testimony from 1935 on the site! Finally a quick look at the income statement for the US federal government shows what a met this really is. Bush's Medicare D added 5 Trillion dollars in unmet obligations, federal retiree benefits and veteran's benefits are another 4 trillion a piece. But Medicare is the gorilla in the room that no one talks about! What your article doesn’t mention and is equally important is that the creators of Social Security only guaranteed solvency of the program through 1980. They were very concerned that the government would see a huge pile of money and begin spend it or borrow against it to offset deficits. In other words in 1980 the program should have been overhauled but was not. All of this is spelled out very plainly on the SSA’s website under historical documents. They have the original testimony from 1935 on the site! Finally a quick look at the income statement for the US federal government shows what a met this really is. Bush’s Medicare D added 5 Trillion dollars in unmet obligations, federal retiree benefits and veteran’s benefits are another 4 trillion a piece. But Medicare is the gorilla in the room that no one talks about!

]]> By: Donald http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-133731 Donald Tue, 28 Jul 2009 12:37:38 +0000 http://www.mymoneyblog.com/?p=4583#comment-133731 You can save massively and wisely for retirement till you turn blue in the face, but when you do turn blue in the face, your ensuing hospital bill may exceed your private health insurance and then bankrupt you. There has to be something better than just every man for himself. You can save massively and wisely for retirement till you turn blue in the face, but when you do turn blue in the face, your ensuing hospital bill may exceed your private health insurance and then bankrupt you. There has to be something better than just every man for himself.

]]> By: Robert http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-133711 Robert Mon, 27 Jul 2009 20:53:39 +0000 http://www.mymoneyblog.com/?p=4583#comment-133711 @Mimi Even if you did away with insurance companies, there isn't nearly enough money there to fund health care. Health care costs Trillions not Billions. Your plan is very simple minded. Quit making suggestions like "tax the rich" and "do away with the middle man and take his profits". Those companies employ lots of people and your plan would only increase unemployment. This government doesn't care about addressing the cost of health care. Nothing in the current legislation addresses the cost. It's just a massive take over. Too many people think that when the government takes over health care that somehow it will all be free. NOTHING is FREE. There is no free lunch. If our government wanted to fix the issue of rising healthcare costs there are many things they could do to address the cost but NONE OF THE SUGGESTIONS MADE ARE IN THE CURRENT LEGISLATION. @Jack Warren Buffet pays capital gains taxes yes, but the company he runs pays payroll taxes, income taxes and social security taxes. Buffet's comment was disingenuous at best and should be ignored. @Mimi

Even if you did away with insurance companies, there isn’t nearly enough money there to fund health care. Health care costs Trillions not Billions. Your plan is very simple minded. Quit making suggestions like “tax the rich” and “do away with the middle man and take his profits”. Those companies employ lots of people and your plan would only increase unemployment.

This government doesn’t care about addressing the cost of health care. Nothing in the current legislation addresses the cost. It’s just a massive take over. Too many people think that when the government takes over health care that somehow it will all be free. NOTHING is FREE. There is no free lunch. If our government wanted to fix the issue of rising healthcare costs there are many things they could do to address the cost but NONE OF THE SUGGESTIONS MADE ARE IN THE CURRENT LEGISLATION.

@Jack

Warren Buffet pays capital gains taxes yes, but the company he runs pays payroll taxes, income taxes and social security taxes. Buffet’s comment was disingenuous at best and should be ignored.

]]> By: Rob http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-133710 Rob Mon, 27 Jul 2009 20:09:44 +0000 http://www.mymoneyblog.com/?p=4583#comment-133710 Okay - so it looks like our children and the rich (SS cap will surely go up - heck I could see it go from 102k with a gap to 150k then 9.6% on that!) could be paying higher taxes - more likely than not - additionally this seems to make a Roth IRA the way to go. I'm 100% in a rollover IRA (never qualified for contributions tax-free). Say I have 200k in it right now and in 2010 when eligible roll this into a Roth. I have the next two years to pay the Federal Tax owed on that (no state thanks to Texas :) no income tax). The day you've converted to Roth (say taxes are 25%) that's leaves you with 150k. Can you withdraw that and spend immediately if you so choose without penalty/taxes - since no earnings yet and you are paying the 25% tax in the conversion? ty in advance. Okay – so it looks like our children and the rich (SS cap will surely go up – heck I could see it go from 102k with a gap to 150k then 9.6% on that!) could be paying higher taxes – more likely than not – additionally this seems to make a Roth IRA the way to go.

I’m 100% in a rollover IRA (never qualified for contributions tax-free). Say I have 200k in it right now and in 2010 when eligible roll this into a Roth. I have the next two years to pay the Federal Tax owed on that (no state thanks to Texas :) no income tax). The day you’ve converted to Roth (say taxes are 25%) that’s leaves you with 150k. Can you withdraw that and spend immediately if you so choose without penalty/taxes – since no earnings yet and you are paying the 25% tax in the conversion? ty in advance.

]]> By: Jack http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-133709 Jack Mon, 27 Jul 2009 19:35:50 +0000 http://www.mymoneyblog.com/?p=4583#comment-133709 estcstm3: The super rich pay a smaller percentage of their income in taxes than the people who clean toilets. That’s why Warren Buffett has said he thinks it’s unfair that the workers who empty the trash cans in his office pay a higher percentage of their income in taxes than he does. Also, Medical malpractice accounts for ½ of 1 percent of health care spending. estcstm3:

The super rich pay a smaller percentage of their income in taxes than the people who clean toilets. That’s why Warren Buffett has said he thinks it’s unfair that the workers who empty the trash cans in his office pay a higher percentage of their income in taxes than he does. Also, Medical malpractice accounts for ½ of 1 percent of health care spending.

]]> By: estcstm3 http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-133708 estcstm3 Mon, 27 Jul 2009 18:33:03 +0000 http://www.mymoneyblog.com/?p=4583#comment-133708 mimi - that is a very simplistic view. Yes lets tax the big bad "wealthy" so that I do not have to have any personal accountability to save for myself. The government should do everything for me provide my retirement ,make my cars, run my banks, pick my investments. tell me where to live, what doctors I can see. Sounds like our current tax system, the super wealthy already pay for like 80% of all TAXES! They do not get that back when they retire. As for people being able to afford healthcare along time ago they did not have frivolous LAWSUITS. You have the choice to save your own money and pay out of pocket. If you cant afford 100 month in insurance they you cant pay for a doctor period. Why would anybody want to work hard to accomplish things when you can sit back and get it for free. mimi – that is a very simplistic view. Yes lets tax the big bad “wealthy” so that I do not have to have any personal accountability to save for myself. The government should do everything for me provide my retirement ,make my cars, run my banks, pick my investments. tell me where to live, what doctors I can see. Sounds like our current tax system, the super wealthy already pay for like 80% of all TAXES! They do not get that back when they retire. As for people being able to afford healthcare along time ago they did not have frivolous LAWSUITS. You have the choice to save your own money and pay out of pocket. If you cant afford 100 month in insurance they you cant pay for a doctor period. Why would anybody want to work hard to accomplish things when you can sit back and get it for free.

]]> By: mimi http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-133707 mimi Mon, 27 Jul 2009 17:45:54 +0000 http://www.mymoneyblog.com/?p=4583#comment-133707 I thought I read that fixing social security would be very simple if we just raised the cap, where the more wealthy will fund even over the amount of their benefits. It sounded very simple - yes, another tax on the rich may seem unfair to some, but to save the social security it seems like a good idea. To fix healthcare, I actually wouldn't endorse a new tax on the wealthy. I think healthcare could be fixed my eliminating health insurance companies entirely and nationalizing our system. Insurance companies are obviously making billions just standing in the middle, so that's where you can get your money to fund everyone's healthcare. It's amazing that people used to pay for actual healthcare out of their own pocket, but now they can't even afford health insurance out of their own pocket. I thought I read that fixing social security would be very simple if we just raised the cap, where the more wealthy will fund even over the amount of their benefits. It sounded very simple – yes, another tax on the rich may seem unfair to some, but to save the social security it seems like a good idea.

To fix healthcare, I actually wouldn’t endorse a new tax on the wealthy. I think healthcare could be fixed my eliminating health insurance companies entirely and nationalizing our system. Insurance companies are obviously making billions just standing in the middle, so that’s where you can get your money to fund everyone’s healthcare. It’s amazing that people used to pay for actual healthcare out of their own pocket, but now they can’t even afford health insurance out of their own pocket.

]]> By: Jim http://www.mymoneyblog.com/why-social-security-is-going-broke-two-simple-charts.html#comment-133706 Jim Mon, 27 Jul 2009 17:42:42 +0000 http://www.mymoneyblog.com/?p=4583#comment-133706 There have already been numerous changes to the laws for SS in the past to help keep it solvent in the future. Taxes were increased substantially from the 1960's to today. http://www.intel.com/support/motherboards/server/s5520sc/sb/CS-030231.htm Back in 1966 the SS rate was just 3.85% and since 1990 it has been 6.2%. That increase in the tax rates would counter act and more than balance the decrease in the ratio of workers vs retirees. They've also started taxing some social security benefits and added federal employees to the tax system. There will undoubtedly be more changes in the future, if/when they become necessary. There have already been numerous changes to the laws for SS in the past to help keep it solvent in the future.

Taxes were increased substantially from the 1960′s to today.
http://www.intel.com/support/m.....030231.htm

Back in 1966 the SS rate was just 3.85% and since 1990 it has been 6.2%. That increase in the tax rates would counter act and more than balance the decrease in the ratio of workers vs retirees.

They’ve also started taxing some social security benefits and added federal employees to the tax system.

There will undoubtedly be more changes in the future, if/when they become necessary.

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