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Thumb of Michigan | WYDave- you touched on it, but there's more as it relates to the trust fund buying treasuries. Theres a very common misconception that the fund was "robbed" by politicians. Thats just not factual. The fund language is very clear on where the money gets invested. And, its always been repaid. Every time.
Different statements have been made along the lines of if it hadn't been stolen, there'd be lots. Just based on deposits, I guess. In reality, I don't think the fund would have been solvent for nearly as long as it has without collecting interest from somewhere. Just putting all our SS contributions under the mattress and waiting isn't a very solid plan.
You are completely correct in what the eventual outcome of a ponzi scheme is. I have no solutions at all to what to do to keep it going. Its a math problem, always will be. Either raise the contribution rate, or discount the benefit even more to those retiring early, or change full retirement age. Or all those things. All political suicide, but its been done before.
Coup mentioned taxing earned and unearned income. I guess I was wondering what it would look like if bennies were taxed for SS and medicare. Theres no taxes collected now, and the employer gets to deduct the cost. I'm sure that would be a smooth controversial free presentation by someone to make..... | |
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tax spending to save soc. sec?
