What do we do about the Social Security running out with the Baby Boomers starting to retire?

Question

And with these young Men & Woman coming home from the War disabled before they had a chance to build a Nest egg to fall back on. There are more Men & women coming home Disabled in this War then there was in Vietnam and Korea but together It is very hard to make a living on SSDI alone and with the high cost of everything that is Associated with being disabled. These Men & Woman gave a lot for there Country it is time we do more for them if everyone was taxed the same across the board on all income a flat tax of 15% for everyone no right off and not stop paying after $90,000. There are a lot of people in this Country that make more then $90,000 and most have very good tax advisors that find all the loop holes and right offs. They say they pay more others say they pay less but a flat tax no deductions or right offs it would be fair for all and SSI would not be in trouble of running out of mone
I am sure I am going to get a lot of negitive remarks here from people that are not disabled

Answer 1

In 1936, the federal government published an informational pamphlet on Social Security. It stated:

"…and finally, beginning in 1949, 12 years from now, you and your employer will each pay 3 cents on each dollar you earn, up to $3,000 a year. That is the most you will ever pay."

http://www.ssa.gov/history/ssn/ssb36.html
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Don't you think the government has already screwed us over enough on Social Security? It is clearly already a multi-trillion dollar lie. How can anyone in America condemn corporate America for anything, when it is our government that has told the biggest financial lie in American history. Why add to it and make it worse?

It is not just disabled that will get the short end of the stick with SS. It is every young person today that will get the shaft.

Rich people pay WAY WAY more taxes.(please don't fall for that nonsense) But I do support a flat tax to make everything simpler.

No, I do not support SS tax on all earnings. That is an unquestioned transfer of wealth that I vehemently oppose.

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Answer 2

I am 62 and just retired. When I was 18 and got my first real paycheck the government took out a huge chunk of my paycheck. I really needed the money then and was pissed off that they wanted something called social security. For my whole life they have kept doing the same thing. Hey, I don't want a million dollars, but it would be nice just to get back all the money taken from me really without my consent at the time. I think any one, of any age, who puts 1 penny into to social security should get it back, every penny put in. The average baby boomer has little control over the government misusing social security funds. meljr

Answer 3

As far as money running out for Baby Boomers, this is an out and out lie foisted upon us by our present administration. Social Security takes in more a month then it pays out. The problem is that a law not allowing any other part of government to raid the excess was proposed but never got passed. The excess, when social security went into effect, was to grow interest for future generations. This administration put the excess money into the general fund and then blasts the public with misinformation that there is not enough money for Baby Boomers so that they can privatize social security which will mean you will never know what you will wind up with and probably have to work until you are 75. The government wants you to save your money so that when you are old and need medical care they can take everything you have earned. The Democrats suggested that people who are earning over $100,000 per year be taxed an extra 1% to cover all health care expenses (Medicare, Medicaid and Social Security). The Administration would rather take care of Iraq and as they say "You Are On Your Own".

Answer 4

You make a decent point, even if your understanding of taxes is way off base.

A tax rate of 15% wouldn't cover the government's expenses unless we switched to much more libertarian expectations in the functions of government (i.e. the government provides only the basics to keep people from preying on each other, and doesn't help people out with roads, schools, medicine, or anything we didn't pay for.), and they'd have to quit going to war.

A lot of people are under the impression that rich people don't pay taxes because they can deduct this and that, but the reality is that rich people still pay a higher percentage of their income than middle class people.

As to the meat of the question, we need some minor tweaks to continue having reliable funding for social security, or we should cash it out to the people who put into it and make everyone responsible for themselves. As for people disabled in wartime, it is disgusting how the military is treated by government--billions for killing machines and nothing for the soldiers fighting for their country. That needs to be fixed, even if social security were abolished.

With most people's understanding of finance, we could never abolish social security without creating a gaggle of old people with no way to support themselves, so we'd better get it on track. It won't go bankrupt though--those reports have been exagerated, and are often simply a misread statistic.

Answer 5

Social Security was a noble idea but it has an obvious flaw: What happens when the retired outnumber (in $$$ terms that is about 1 retired person for every 10 working taxpayers) the working. The problem is that we will never be able to afford paying other peoples bills, everyone that is retired because of age should use less S.S.I. money and more of their savings. This way, the disabled can have the money they never had the chance to save.

Answer 6

First off, Social Security isn't going to disappear. Even if it can't honor it's promised obligations, it can still honor a significant percentage of them, like 70%. In fact, that's what I'm basing my retirement on, and then saving like crazy to make sure I've got plenty of other assets. I highly recommend anyone who is still working to do the same.

Put retirement savings ahead of any other significant things. Your kids can always get loans and grants, or pay for their education themselves. You can always get by with a Ford instead of a BMW. But there are no loans or grants to help you in your retirement unless you take care of yourself first!

Those that are disabled while serving in the military have other entitlements to take care of them. Hopefully even if they have physical handicaps, they can still do jobs like office work, sales, etc.

I'm not sure if the 15% flat tax would be much of an improvement. You are wrong when you think the top earners do not pay enough taxes. If you will look at IRS data that I've linked to below, the top 25% of earners pay 85% of the federal income taxes. The write offs only do so much, and they do encourage desired behavior, like buying and owning your own home, investing, starting businesses, etc. One of those big write offs are the 401k and IRAs designed to encourage you to save for your own retirement. Also, the highest income earners get hit with the Alternative Minimum Tax (AMT), which eliminate most of the write offs.

Answer 7

It gets worse. Thanks to the Republican senate there may not be anything left for anyone in the future. So much money is being borrowed out of it. Not only that but in May 06' Republicans passed a bill allowing illegal aliens that got their jobs with false and forged documents (felony) to also collect Social Security. This Social Security system is in such a crisis the way it is. It can't be lived upon anymore and now illegal felon aliens also get a cut. Unbelievable.

Answer 8

The issue clearly is that we expect the government to look after our savings, which is rediculous. We want the government in our lives as little as possible, but expect them to keep our savings for the future. And how did someone not realize that this problem would pop up when SS was created? Someone clearly did not think this out. People should be required to make and keep their own savings, and if they are dumb enough not to, let them sleep on the street. It doesn't take a genius to save money for the future, and the darn bleeding hearts of the world want us to help everyone not smart enough to save themselves.

Answer 9

Make everyone pay into SS, especially all members of Congress. Watch how funding isn't an issue anymore.

Answer 10

Blame it on the Democrats. It was FDR who came up with this awful system. Welfare for seniors.

I would rather taken that money and invested it and the return would have be much greater.