[Homestead] One More View of Social Security

Clansgian at wmconnect.com Clansgian at wmconnect.com
Mon Feb 14 18:15:17 EST 2005


You are assuming there is only one way to create the funds to pay out and
that is by taxing more.  There are other ways.  One would be to cut some
programs (Star Wars comes to mind) and foreign aid to name just two other
avenues. 

Well, at least I'm viewing the taxes as the ultimate source.  If you cut Star 
Wars and foreign aid [although combined they don't equal a large % of SS], 
it's still tax money that pays the SS tab.  To the extent that you cut other 
programs it would not be NEW taxes, but it would be taxes none the less.



> One could also make SS the program it was intended (needs based)

I'd do this in a heartbeat.  My formula would be this (or something near it). 
 Establish what sort of disbursement is the maximum monthly payment and then 
base how much the recepient gets on what % of his income (on the average) he 
paid into it.   Someone with an average of $500K income might have only paid 1% 
of his income into SS, so he should get maybe 10% of the max.  Someone who 
worked for minimum wage all his life paid in 7% of his income and he should get 
100% of the max.



> If one wants to "repair" SS, then change the law.  Make it an actual pension
> fund and do what pension funds do.

I don't know why this hasn't been done.  But one thing is that an actual 
pension fund has to be based on actual assets, not just the promise to tax.  



> 
> Or better yet, use what is already there and up and running, roll the thing
> over into the Federal Government Insurance and Annuities Program.  I mean,
>  

No reason not to, but correct me if I'm mistaken here but doesn't that 
program hold actual investment assets and not just treasury notes?

James




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