Should paying social security taxes from your paycheck be optional?

Question

I have just taken a look at my year end W-2 forms. I paid more to Medicare and Social security than anything else.

Would it make sense to make paying both an optional thing? Or would it do more harm then good?

I am all for helping those who need it by far. I really think the SS is meant as a buffer of support, not the whole support, as I know I for one couldnt live with under 1500 a month income at all. Sadly though- that isnt the truth. Many people are on whole SS and barely making ends meet. Not a life I would like to live personally.

Forcefully taken or happily donated- in the end it boils down to the government and what they want.

Hopefully there is still some left in 35 years from now when i will want or need it!

Answer 1

Where do you even start with that one?

The problem with social security is that it is not a savings account. Your current payments are funding the retired people of today. The theory is that when you retire, all the young whipper snappers will be paying to support your wrinkled self. So, if you ask the millions of seniors who are collecting social security right now, they'd say no way! They'd get violent too probably. They consider it a right and many could not survive without it.

Of course you have to disregard the fact that most of today's retired folks get paid in 5 years what they put into social security during their lifetimes. You see when they were your age, they paid a much smaller percentage than you do. That's because the life expentacy was much less than it is today. People weren't expected to live to 65 when social security was designed. Now they easily live 10-20 years past it.

If you ask young people they'd say heck yea, let's do something different because this system sucks. I mean, can I really expect to collect social security in 30-40 years? Will the system be bankrupt as many predict? Why can't I save money for myself instead?

Of course politicians are influenced by votes. And guess what? Seniors as a block vote at a very, very high percentage. So, they usually get their way.

There is so much more to this complicated, very important issue. I suggest you do some more reading but you've asked an excellent question!

Answer 2

First, let's understand that when you pay social security, you're paying for someone else. The money isn't going into an account marked for you. No matter where you are politically, this is fact.

Where people differ is in 2 places. One, how long with this last? To many, it seems unfair to pay SS if, when you're retired, it won't be around any more. The second place people disagree is whether or not it should be a government function to collect money for your retirement.

Let's assume, for now, that SS will be around in the future.

If that's the case, then you paying now will get you SS money later. Having a guaranteed income in retirement is a good thing, I think. While some people invest wisely, not everyone does. And it's not a beneficial thing to have a country full of old people that failed to save (or got burned by a bad investment). So, having some support is a good thing.

I like to think of it this way: it's my contribution to this country. It's a donation (albeit a forced one) to help out our retirees. I may not like the amount or the fact that it's presented as MY SS, but I do like the fact that everyone is helping out. But that's me.

Should it be optional? No. Either it's required or we do away with it. If we do away with it, then people who want to give to the elderly can. Those that want to sock away money can. But no one can come crying when an Enron burned them and they have no money. You'll be left to die. Not a country I'd particularly want to be in.

Answer 3

If they made it optional no one would want to do it. Lets be honest I don't want to have to work my butt off for the benefit of other people.

To me social security should be privatized whatever you pay into it should be what you get back out when you retire. At our current course of action by the time I retire (I'm almost 25) social security will run out. This is because of a number of reasons. One not everyone who is currently receiving social security has worked in their lifetime. Secondly the baby boom generation is starting to retire which means we have more people than we have money.

That is why they don't make it an option. If nobody pays into nobody will get a dime.

Answer 4

No, it's not optional. And no, it's not a good idea.

Try to imagine yourself, 75 years old, with virtually nothing to live on. It's tough enough for many seniors WITH Social Security, let alone without it.

Now imagine yourself being fully disabled by an uninsured drunk driver. With no SSI or SSD income to fall back on.

Answer 5

if you make it optional, then no one will pay. When the poor get older we will just have to pay more income tax to cover them (not that SS tax covers it all, but it helps).