Tax Package Will Aid Nearly All, Especially Highest Earners

[goof2]

Originally Posted by Captain Morgan

I love all of the talk about SS going bankrupt if we don't fix the system, then the gov't chooses to lower the amount of money going into SS, even if it is only for 1 year. Fucking ridiculous. That's like me bitching that my bank account is decreasing in value, then choosing to slow down the amount of money going into my account. What the fuck is wrong with this government? Doesn't anyone think?

I see what you are saying but I think we disagree about the ultimate outcome. You think the system will be salvaged and lowering SS withholding makes that more difficult. I think the SS system is doomed to failure so less money going in to a system that will not be there when I'm supposed to collect is actually a good thing.

SS is called the third rail of politics for a reason. The lies and distortions that were perpetuated (and are still being perpetuated) about Bush's attempt to institute some reform and privatization of SS make the discussion of Obama's health care reform look tame in comparison. There was zero support for what Bush wanted to do because changing SS pisses off old people, even when those changes don't affect them, and old people vote a lot.

There is pretty much zero upside for a politician to reform SS and a ton of downside to it. There are really only five options available for reform; 1) cut the amount of benefit payments, 2) extend the age where people can start to collect, 3) increase the SS withholding amount, 4) make those with money at retirement ineligible for collecting SS, or 5) increase the return on SS investments so the system makes more.

None of those options are particularly popular except number 5, and that is really only when the Dow is doing well. When the market tanked around 2 years ago I heard a lot of "If Bush's plan had gone through a lot of seniors would be broke and eating cat food now!" nonsense. Even if Bush's plan had passed it wouldn't have affected anyone for another year and private investment would have only been allowed with a tiny portion of SS withholding (1% I believe), but none of that matters. It doesn't matter though, and anyone who had voted for that plan would have been crucified in this last election.

Politicians will run SS in to the ground because that is the best way for them to stay politicians.