Posts tagged ‘Social Security’

January 15, 2013

Who gets your Social Security when you die?

Help Personalize Social Security and Make the Poor Rich.

Help Personalize Social Security and Make the Poor Rich.

EDITORS NOTE:  The following comment is from a viral email that I received today. To find out more on our efforts to make the working poor, single and divorced women, and Black Americans wealthy while generating more revenue to the U.S. Treasury, visit the USAPlan.com. Here we outline a thorough explanation on how to achieve a massive reform of our government’s welfare and entitlement programs.

——————————-

Who gets your Social Security when you die?

This is another example of what Rick Perry called “TREASON in high places” !!! Get angry and pass this on!

Remember, not only did you contribute to Social Security but your employer did too. It totaled 15% of your income before taxes. If you averaged only $30K over your working life, that’s close to $220,500.

If you calculate the future value of $4,500 per year (yours & your employer’s contribution) at a simple 5% (less than what the govt. pays on the money that it borrows), after 49 years of working you’d have $892,919.98.

If you took out only 3% per year, you’d receive $26,787.60 per year and it would last better than 30 years (until you’re 95 if you retire at age 65) and that’s with no interest paid on that final amount on deposit! If you bought an annuity and it paid 4% per year, you’d have a lifetime income of $2,976.40 per month.  The folks in Washington have pulled off a bigger Ponzi scheme than Bernie Madhoff ever had..

Entitlement, Phooey! I paid cash for my social security insurance!!!! Just because they borrowed the money, doesn’t make my benefits some kind of charity or handout!!

Congressional benefits —- free healthcare, outrageous retirement packages, 67 paid holidays, three weeks paid vacation, unlimited paid sick days, now that’s welfare, and they have the nerve to call my social security retirement entitlements?

We’re “broke” and can’t help our own Seniors, Veterans, Orphans, Homeless

In the last months we have provided aid to Haiti, Chile, and Turkey. And now Pakistan …….home of bin Laden. Literally, BILLIONS of DOLLARS!!!

Our retired seniors living on a ‘fixed income’ receive no aid nor do they get any breaks while our government pours Hundreds of Billions of $$$$$$’s and Tons of Food to Foreign Countries!

They call Social Security and Medicare an entitlement even though most of us have been paying for it all our working lives and now when it’s time for us to collect, the government is running out of money. Why did the government borrow from it in the first place? Imagine if the *GOVERNMENT* gave ‘US’ the same support they give to other countries.

Sad isn’t it?

December 30, 2011

Social Security Lies

Privatize Social Security "Make the Poor Wealthy"

Privatize Social Security "Make the Poor Wealthy"

Here’s what the 1936 government pamphlet on Social Security said, “After the first 3 years – that is to say, beginning in 1940 – you will pay, and your employer will pay, 1.5 cents for each dollar you earn, up to $3,000 a year. . . beginning in 1943, you will pay 2 cents, and so will your employer, for every dollar you earn for the next 3 years. . . . And finally, beginning in 1949, twelve years from now, you and your employer will each pay 3 cents on each dollar you earn, up to $3,000 a year.” Here’s Congress’s lying promise: “That is the most you will ever pay.”

Having read the government pamphlet, I consulted Webster’s Dictionary. The definition for the word ever contains descriptions like: “at all times,” “always,” and “at any time.” Had Congress lived up to its promise, our maximum Social Security tax this year would be $90 instead of over $6,000. The Social Security Act of 1935 would have never been enacted had Americans back then known that we’d be subject to a $6,000 tax.

Another lie in the Social Security pamphlet is, “Beginning November 24, 1936, the United States government will set up a Social Security account for you. . . . The checks will come to you as a right.” Americans were led to believe Social Security was like a retirement account and money placed in it was our property. President Clinton and Vice-President Gore and their sycophants want you to continue to believe that. The fact of the matter is you have no property right whatsoever to your Social Security “contributions.”

You say, “Williams, that’s crazy; what do you mean?” In a U.S. Supreme Court case, Helvering v. Davis (1937), the Court held that Social Security was not an insurance program saying, “The proceeds of both employee and employer taxes are to be paid into the treasury like any other internal revenue generally, and are not earmarked in anyway.” In another Supreme Court case, Fleming v. Nestor (1960), the Court said, “To engraft upon Social Security system a concept of “accrued property rights” would deprive it of the flexibility and boldness in adjustment to ever-changing conditions which it demands.” Again, the Court rejected any comparison of Social Security with insurance or an annuity. Now the Social Security Administration belatedly is trying to clean up its history of deception. Its web site (www.ssa.gov/history/nestor.html)says, “Entitlement to Social Security benefits is not [a] contractual right.” Adding, “There has been a temptation throughout the program’s history for some people to suppose that their FICA payroll taxes entitle them to a benefit in a legal, contractual sense. Congress clearly had no such limitation in mind when crafting the law.” That’s Social Security Administration’s dishonest blame evasion. After all it was they who said, “The checks will come to you as a right.”

What to do? First, let’s commend George Bush for having the guts to touch the “third rail” of American politics by warning the American people that Social Security is a national disaster waiting to happen in just 20 or 30 years. His proposal to allow workers to take two or three percent of their FICA taxes and invest them in an approved private investment vehicle is a good first step. A bolder step would be to honor our current Social Security obligations and allow any person who chooses to do so to opt out of the program altogether and privately manage their retirement needs. That, of course, would retire funding Social Security obligations out of general revenues for a period, requiring large spending cuts elsewhere. But each year we’d be moving towards a permanent solution.

Walter E. Williams

c23-00

May 22, 2000

via Social Security Lies.

December 23, 2011

Tax the Young – Since the Democrats can no longer Tax the Rich – to Pay for the Social Security Defunding Credit

Privatize Social Security "Make the Poor Wealthy"

Privatize Social Security "Make the Poor Wealthy"

Lost in Beltway wrangling over a payroll tax cut, an ugly reality lurks: Our politicians are plotting yet another raid on the Social Security “trust fund,” which is already near insolvency. When will this madness stop?

President Obama and his congressional Democrats know well how bad their spendthrift reputation is among voters as election day approaches. With Obama at sub-50% approval numbers and Gallup reporting Congress clocking in at a record-low 11%, they expect a bloodbath at the polls in November — and maybe another slashed debt rating, too.

What then could be better for Democrats than to be able to claim that deep down, they’re tax cutters, too? Just like Republicans — whose corporate tax cuts in 1982 led to an unparalleled decade of economic growth.

But Obama and his Democrats don’t want to direct any tax cuts toward investment for long term growth — as corporate tax cuts do — but to hand them out to taxpayers like party favors in the hopes it’ll pay off come November. It’s a political game, but they have few other options aside from cutting spending.

But there’s a big catch: The payroll tax cut they seek is nothing more than taking cash from the back pockets of taxpayers and handing it to them up front.

The supposed payroll tax cut, as blogger Don Surber has noted, is a Social Security tax cut that comes through the Federal Insurance Contributions Act.

That means the tax cut will be achieved by taking $120 billion from the Social Security “trust fund.”

Instead of getting rid of a bureaucrat or a thousand, the idea is to simply raid the Social Security trust fund one more time, hastening the day it goes bust.

Subscribe to the IBD Editorials Podcast

As if it’s not in bad shape already.

Sure as the sun comes up in the morning, the Social Security trust is already bankrupt, as demographic decline means less payroll taxes coming in for ever more retirees. By 2036, there won’t be a dime in it, and the only money to pay a growing field of retirees from a shrinking pool of workers will be from those workers’ contributions. The payroll tax cut proposed by the Democrats will only make that day come sooner.

So let’s call it what it is: A tax hike on the young to pay those already working, with the added kicker of an empty pot at the end of the Democrat rainbow.

via Payroll Tax Wrangling Is All About Raiding Social Security Trust Fund One More Time – Investors.com.

December 15, 2011

The Trickle-Up Theory of Economics and the Case for Privatizing Social Security

For every force there is an equal and opposite force.

By Jeffers M. Dodge 12-14-2011

Privatize Social Security "Make the Poor Wealthy"

Privatize Social Security "Make the Poor Wealthy"

The Democrats say they are opposed to the Privatization of Social Security for many reasons. One preeminent excuse is that it will “put people into an insecure place for their retirement.” They call it the “eat dog food plan.” But the real reason Democrats hate the idea is that it will create a class of citizens that are invested in the success of America instead of becoming dependent on Big Government.

Also, Democrats won’t tell you that President Obama confiscated $500 Billion from the Medicare Trust Fund. They will not mention that just this year he took $150 Billion from the Social Security Trust Fund putting seniors in jeopardy of having their benefits significantly cut. He also threatened to stop issuing Social Security checks to retired folks if the Republicans did not agree to raising the debt ceiling. This means, for the first time, we are at the mercy of big government politics to secure our future retirement. Talk about an insecure place.

I am going to tell you why I want to opt-in to a Personal Saving Account that is molded after the privatized retirement systems in Peru and Galveston, Texas and proposed by Newt Gingrich.

I was born in 1950 and went to work at the age of 21 (in 1971) earning about $10k per year and I plan to retire at the age of 65 in 2015 earning about $90K per year. I will have worked 44 years and earned and average of $42,000 per year.  Under the current Social Security system I will collect about $1,500 per month in benefits, provided that it is still solvent.

If I had started putting 15% of my gross earning into a personal “Universal Savings Account” at the age of 21 and tied it to the S&P 500, I would be able to retire at the age of 61 with about $25,000 p/month and have a $3.3 million nest egg to leave to my children and grandchildren when I die.

Here are my figures;
Average Hourly rate – $20.00
Weekly earnings – 40 hours – $800
Average 40 year earnings – $41,600
Yearly Withholding – at 15% – $6,240
Invested in S&P 500 Rate of return – 10%*
Years invested – 40
Total Nest Egg – $3,331,463
Monthly Payment of Interest @ 10% -$27,762**
(Data developed by Dick McDonald***)

Basically, the Government has been taking my money at $6,000 per year and spending 80% of it on entitlement benefits to current retirees and the other 20% on buying votes. In other words my rate of return with the government has only been 1/2 of 1%. And to add insult to injury, I do not have a nest egg to leave to my heirs. So, in essence the government stole $3.3 million dollars from my offspring.

Think about it for a moment. What does the stock market represent? It reflects the health and strength of the American business sector. (Not the U.S. Government, but American businesses – main street, its workers and entrepreneurs.) So why not work, save and invest in America? More than 50% of Americans have some skin in the game. The benefit of this program will be a healthy private sector which means more tax revenue for the city, state and federal treasuries.

Question: Would workers need to set up additional 401ks and other retirement and pension plans? No, the 15% per month allocated to your future retirement will be all you need. This would mean more disposable income for all workers. Consider the wife that makes the choice of staying home and raising her children? Now she can do it. Taking 18 years out of her professional career to raise a family knowing that in the long run it is the best (and most fulfilling) thing to do. And with the advent of technology more and more people are working from home.

Consider the fact that Black Americans do not live as long as other races and statistically do not live long past retirement. With a personal account one can choose when to retire after the age of 50.

From a macroeconomic perspective, imagine transferring $1.3 trillion dollars collected in payroll taxes every year out of the government coffers and into the capital markets. What do you think would happen to the stock market returns, year after year? Businesses would be expanding at record levels, the competition for skilled labor would increase, the average wage would increase and we would have to loosen our immigration policies just to satisfy the demand for labor. What would happen to the $100 trillion in future unfunded entitlement liabilities of the Federal Government? They would be wiped out. The size of government would be cut in half.

This is the smart way to go and this is the fundamental transformation that we hoped Obama was talking about; private sector growth and prosperity, instead we got abject failure.

What would happen to the value of the Dollar if we transferred $1.3 trillion back into the private sector year after year? It would become the strongest it’s ever been. This is not necessarily a good thing so we need to temper the rise in value of the dollar by printing the money to pay for the transition costs associated with privatizing the entitlement programs. This sounds tricky, but is a clever way to separate, for good, the dysfunctional socialist aspects of our federal government in a slow and methodical way.

The entitlement programs are not the only destructive big government institutions that need to be done away with. The Department of Education and ObamaCare can be rendered obsolete with a few well-appointed tax incentives to the owners of the Universal Savings Accounts. The retirees can leave their nest eggs to their offspring in the form of trust funds that would pay for the basic financial necessities of life, such as, funding the best private education and insurance for their children. Consider private health, life, auto and homeowners insurance. Even a janitor making minimum wage can leave enough money for his children to attend the best schools and have the best healthcare. This would go a long way in reducing gang membership, crime and poverty.

After thinking through this new way of looking at our retirement there becomes one big question that begs to be answered. Why haven’t we moved to personal accounts sooner? The only answer is because Big Government could not exist without these big socialistic institutions. Both parties are to blame and a lot can be gleaned from watching this video about how “How Congress admits to skimming trillions of dollars of overpayments from the Social Security trust fund”.

WATCH PopModal Videos – Senate Democrat admits to skimming trillions of dollars of overpayments from the Social Security….

In effect, Congress has been enjoying a subsidy of about $200 billion each year from Social Security overpayments every year for 50 years. Congress owes in excess of $2 trillion dollars to the Social Security Trust Fund that as of this year has become cash negative. What’s up with that?

Lets get back to the subject at hand — transforming Social Security to the private sector. The administrative costs involved to manage your USAccount should be a flat fee for the life of the project. In the beginning the USAccount balances will be as low as perhaps 1% of gross appreciation. A 1% fee may not cover the costs initially but as time moves on the balance in your USAccount grows and the 1% fee grows with it. This provides an incentive for the administrators to do their best to ensure a robust growth and adequate safety (insurance and a diversified portfolio like the S&P 500 Index Fund) for your money.

Trickle down economics never really reached the bottom rung of our society. This is a direct result of the destructive nature of the socialistic entitlement programs. Once these have been replaced, even the minimum wage janitor could retire wealthy. This is why it is called the Rise Up America Plan and this plan will make the poor rich and the nation smaller, stronger and smarter. This is the Trickle Up Theory of Economics.

*http://www.moneychimp.com/features/market_cagr.htm

** The S&P 500 had a total return of 15.1% 

*** Dick McDonald the author of the RiseUpAmerica Plan to Privatize Social Security and make the Poor Rich.

October 24, 2011

Change no SAVE the World: Personalize Social Security

Privatize Social Security "Make the Poor Wealthy"

Privatize Social Security "Make the Poor Wealthy"

By Jeffers M. Dodge 10-24, 2011
By privatizing/personalizing Social Security we would get:

1. Smaller more efficient Government (The socialist have encumbered our federal government with obligations that currently eat up more than 50% of our tax revenues and it is getting worse every day.)

2. Our capital markets would explode (providing investment credit to millions of small businesses to expand their produce lines, markets and payroll.)

3. Explode the Federal Tax revenue. (The government will be downsized and the source of its revenue, the private sector, would be increased.)

2. Explode the job market (those that leave the public sector will find plenty of jobs in the private sector.)

3. We would close the wealth gap (the current income gap is caused by illegal immigration and inadequate education.)

4. Make the working poor rich (Just one generation and the results will be remarkable)

5. Explode the world wide economy (Warning: Those governments that do not follow this program will fall behind and will be replaced by their own citizens.)

6. Significantly reduce Crime (Better education and plenty of jobs will keep people out of gangs)

7. Significantly reduce Poverty (The less crime in a neighborhood the less poverty)

8. Educate our kids (The more money a family makes the better the education they can afford.)

9. Solve the health care issue (The more money a family makes the better the health care they can afford.)

10. No more 401K or other public or private pensions. (15% compounded daily for 40 years will be all you need to have a first rate retirement.)

Please LIKE Privatize Social Security. If you have any questions on how to accomplish an efficient transition or how a “Universal Saving Account” would work please call me at (313) 444-2704.

Jeffers M. Dodge

“The society that puts equality before freedom will end up with neither. The society that puts freedom before equality will end up with a great measure of both.”

September 16, 2011

Is Social Security a Ponzi Scheme and why is Thomas Friedman a Hyperbolic Hypocrite

Vodpod videos no longer available.

Rick Perry called Social Security a “Ponzi” scheme and NYT’s Thomas Friedman had a cow.  Now Tom didn’t really have a cow.  I just used that word to colorfully exaggerate Tom’s response to Rick’s use of the phrase “ponzi scheme.”  It’s called hyperbole.  Rick’s hyperbole has now been taken literally by the press, Democrats and his presidential opponents.  Thankfully it has driven the dialog to the point ordinary taxpayers and voters might consider evaluating this unsustainable pathetic excuse of a retirement program.

It has always been a ponzi-like scheme where new participants in the program pay the benefits for older participants.  Unfortunately when it was started 42 workers supported one retiree. Today it is down to three workers and fast approaching just two workers to support each retiree. Tom Friedman knows this too, but he refuses to admit it because he is just another propaganda pimp for liberals at the socialist rag called the New York Times.

Now if you think I am harsh on old Tom remember I use hyperbole and it is just his mindless support of demand-side economics that moves me to be so harsh. Everyone including Friedman admits Social Security is broken.  Everyone admits that the pay-as-you-go scheme of funding the program is bankrupting the nation and something has to be done.

However, Friedman wants to fix the program without specifying how. He is like all Democrats. They know privatizing Social Security will destroy their hold on government as they rely on special interests like retirees and big government programs like Social Security to keep them in office.  Opposing privatization also makes a great straw man for Tom to keep his books selling.  Add hypocrite to his sins and that’s no hyperbole.

It is simple as this. If the nation is collectively stupid (not just uninformed) they will try to repair a broken Social Security system.  If  the nation magically gets informed they will opt to replace our Social Security system with one that will increase a retirees monthly retirement check over 20 times that presently paid by our government-controlled system.

That’s right. Just about any privatization system can increase benefits. Chile has one; so do two counties in Texas. I reject those systems because they are controlled by governments.  I have proposed one that is controlled by the people and out of reach of Congress, the states and the municipalities.  And rather than increase benefits five times the Rise Up America plan increases benefits 20 to 50 times.

See  http://www.riseupamerica.us

Now look for Tom Friedman to oppose this plan. It would seriously cut into his rant that he is for the little guy. Rise Up America makes the poor rich. Tom Friedman can’t abide that. It would destroy socialism and the “common good” tune he has been playing for years.

%d bloggers like this: