I refused to join AARP because they supported Social Security "reform". Social Security is separate from the federal budget and has its own revenue stream. (Politicians lump their budgets with Social Security figures because those decades of surpluses made their numbers look better.)
Changes to retirement ages or benefits will only change the date that the Trust Fund zeros out in 2035, after which without changes only 80% of benefits could be paid through 2094. Simple adjustments to the payroll tax rate, which used to be routine, would have ensured 75-year solvency.
The Trust Fund has $2.89 trillion in interest-bearing US Treasury Bonds--those pesky paper IOUs backed by the full faith and credit of the United States. (Grandma and the Chinese trust those bonds. Are we stealing from them?) The Trust Fund is so large because--guess what?--baby-boomer retirements were planned for! Shocking, I know.
The GOP does not make money on Social Security - that is why they are ideologically opposed and why they tell all those lies about SocSec (going broke, running deficits, in the red, insolvent, federal budget's biggest expense, etc.). The financial sector wants our retirement money to play with and to get their 20% overhead. That is what privatization is all about. But it's our money! Nope. Social Security is retirement and disability insurance; it is not a savings plan.
Sure, let's raise retirement ages and cut benefits. It won't change the federal budget or the National Debt by one dime. Self-funded. Separate by law. Reform? Oh, gosh, yes, we will start to see the effects of reform in 16 years.
Note also that a decrease in benefits would result in more senior poverty and a concomitant increase in assistance by taxpayers. And it would reduce beneficiaries' consumer spending, so our economy takes a hit. The wealthy don't care if they have to pay into Social Security; their contribution in payroll taxes for Social Security is capped at $15,921.60. Only the first $128,400 in income is subject to payroll taxes. Payroll taxes on the wealthy are not why they don't like Social Security. It's because it is non-profit.
Social Security will always be there. Unless politicians take it away from us.
Of course, people are still free to buy stocks, etc. Just beware of the Bernie Madoffs stealing your retirement savings. Or stock market crashes. Or your broker buying and selling stocks to get sales commissions until there is no money left (churning). Or your financial advisor or manager taking all your money and going to live in the Bahamas. Trump even signed an Executive Order that canceled the requirement that financial advisors act in your best interests. Enron imploded because of fraud, and employee stocks (part of their pay) suddenly became worthless.
And how about if your monthly pension benefits are cut to less than half because Romney bought the company you worked for and sold off the pension for cash. Romney also took most of the cash from companies, sold some assets, and then saddled those companies with the cost of their own purchase. All nice and legal if the company can last another two years. That is how the 2012 Republican presidential candidate made his money.
Changes to retirement ages or benefits will only change the date that the Trust Fund zeros out in 2035, after which without changes only 80% of benefits could be paid through 2094. Simple adjustments to the payroll tax rate, which used to be routine, would have ensured 75-year solvency.
The Trust Fund has $2.89 trillion in interest-bearing US Treasury Bonds--those pesky paper IOUs backed by the full faith and credit of the United States. (Grandma and the Chinese trust those bonds. Are we stealing from them?) The Trust Fund is so large because--guess what?--baby-boomer retirements were planned for! Shocking, I know.
The GOP does not make money on Social Security - that is why they are ideologically opposed and why they tell all those lies about SocSec (going broke, running deficits, in the red, insolvent, federal budget's biggest expense, etc.). The financial sector wants our retirement money to play with and to get their 20% overhead. That is what privatization is all about. But it's our money! Nope. Social Security is retirement and disability insurance; it is not a savings plan.
Sure, let's raise retirement ages and cut benefits. It won't change the federal budget or the National Debt by one dime. Self-funded. Separate by law. Reform? Oh, gosh, yes, we will start to see the effects of reform in 16 years.
Note also that a decrease in benefits would result in more senior poverty and a concomitant increase in assistance by taxpayers. And it would reduce beneficiaries' consumer spending, so our economy takes a hit. The wealthy don't care if they have to pay into Social Security; their contribution in payroll taxes for Social Security is capped at $15,921.60. Only the first $128,400 in income is subject to payroll taxes. Payroll taxes on the wealthy are not why they don't like Social Security. It's because it is non-profit.
Social Security will always be there. Unless politicians take it away from us.
Of course, people are still free to buy stocks, etc. Just beware of the Bernie Madoffs stealing your retirement savings. Or stock market crashes. Or your broker buying and selling stocks to get sales commissions until there is no money left (churning). Or your financial advisor or manager taking all your money and going to live in the Bahamas. Trump even signed an Executive Order that canceled the requirement that financial advisors act in your best interests. Enron imploded because of fraud, and employee stocks (part of their pay) suddenly became worthless.
And how about if your monthly pension benefits are cut to less than half because Romney bought the company you worked for and sold off the pension for cash. Romney also took most of the cash from companies, sold some assets, and then saddled those companies with the cost of their own purchase. All nice and legal if the company can last another two years. That is how the 2012 Republican presidential candidate made his money.
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