Social Security, . . . . The beginning of the end

CobraEd · #1 (**permalink**) 09-28-2009, 02:25 PM

http://news.yahoo.com/s/ap/20090928/...ly_retirements

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computerworks · #2 (**permalink**) 09-28-2009, 02:28 PM

Just to take some drama out of the title... the deficits through 2011 are only 3/4 of a percent of the accruals. (.0075)

cobra de capell · #3 (**permalink**) 09-28-2009, 04:04 PM

Why take the drama out? Actually, it's even worse than the title implies....given the Obama spending and policy programs that are now in place and on the table.

From a budget-busting perspective, last year where the US government had a $73 billion Social Security surplus to spend, this year it will be a paltry $16 billion and next year it will be a number indistinguishable from zero. It is hard to overstate the importance of this shift.

This means several things. Instead of $703 billion coming in over the next 10 years, the current (overly optimistic) projection calls for only $83 billion. This means at least another $620 billion in fresh borrowing will have to occur.

More importantly, this means that the United States eventual date with bankruptcy has been moved forward by about 8 years or so. It also means that instead of being some future problem, a few administrations down the road, it is a near certainty that the current administration will have to confront some very difficult funding decisions that will be forced by the inability to borrow enough to pay for everything.

http://www.businessinsider.com/henry...ty-bomb-2009-4

Computerworks - I hope being a mod here pays well or you will be somewhere in this line....your day job will vanish.....

427sharpe · #4 (**permalink**) 09-29-2009, 08:24 PM

Currently, the SS tax is 6.2% on the first $106,800 of income and 1.45% on all income thrown on for good measure. As we have already decided to make Social Security income taxable at either 50% (MAGI floors of 25/34k for individuals/MFJ) or 85%( for 32/44 for Ind/Married filing jointly), the way they intend to pull it out is pretty clear. OAISD taxes will become uniform (no upper limit), and the rate will rise to between 8 and 10%, + the 1.45%, and the current system will be scrapped in favor of a 'progressive' system much like the current general tax code. I would expect that the allowable exclusions will tighten considerably (especially foreign investment income and the 'tax-free' status of many bonds) and taxation on the SS benefit tax will begin at about $15,000 of income. This will raise revenues while cutting expenditures. Very bad signs for anyone close to retirement now, I would say.

Excaliber · #5 (**permalink**) 09-29-2009, 09:08 PM

I worry more about my pension going up in smoke than SS...

427sharpe · #6 (**permalink**) 09-30-2009, 08:54 PM

Then your pension must really suck, or you have not studied the numbers on SS yet.
Technically, SS cannot go br because it is not a 'funded' system. Todays inflows pay todays outflows. As America ages and the babyboom generation retires, fewer workers will have to support more retirees ss income if the system goes unchanged. IIRC, it adds up to 2.7 retirees per worker at the bell of the curve. It is illogical to assume that this can be maintained without some sort of income layaway to make the difference manageable. That layaway basically means that workers today that are 10-20 years away from retirement have to be tapped for more income to be 'funded' into SS. That means higher taxes, ceteris paribus.

Excaliber · #7 (**permalink**) 09-30-2009, 10:24 PM

SS is pretty far down the road for me, close to ten years. I keep an eye on it, but it's to far out to get real worried about,,,yet. I do want to look into what happens when an international company goes broke and then suddenly there is no money for the pension plan. I'm a little fuzzy on the "what if's" in that scenario.

I assume there is some kind of Government insurance plan that is sucking or will be sucking money out of Dan40's wallet to cover me though... That and my entitlement to better quality Government funded Health Care when the time comes.

Dan40 · #8 (**permalink**) 10-01-2009, 11:22 AM

Quote:

Originally Posted by Excaliber

SS is pretty far down the road for me, close to ten years. I keep an eye on it, but it's to far out to get real worried about,,,yet. I do want to look into what happens when an international company goes broke and then suddenly there is no money for the pension plan. I'm a little fuzzy on the "what if's" in that scenario.

I assume there is some kind of Government insurance plan that is sucking or will be sucking money out of Dan40's wallet to cover me though... That and my entitlement to better quality Government funded Health Care when the time comes.

Plan on being very, very skinny! That will be better for good health and you'll need a lot of that. I can step over your cooling cadaver and walk on without a second thought. A quick lament for productive people, but parasites are just splats on the windshield of life.

Excaliber · #9 (**permalink**) 10-01-2009, 11:34 AM

Those who draw SS are hardly parasites. If I came across your cooling cadaver and I'd take your wallet and never miss a stride.

Jamo · #10 (**permalink**) 10-01-2009, 02:19 PM

Republican: I can step over your cooling cadaver and walk on without a second thought.

Democrat: If I came across your cooling cadaver and I'd take your wallet and never miss a stride.

Excaliber · #11 (**permalink**) 10-01-2009, 02:56 PM

Eh eh, well that's accurate...

CobraEd · #12 (**permalink**) 10-01-2009, 03:14 PM

If the assclowns in washington had invested all of our SS money from day one instead of using it as a slush fund to bandaid their financial screw-ups, we would all be elligable for $15K a month starting at age 50!!!

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Dan40 · #13 (**permalink**) 10-01-2009, 03:39 PM

Quote:

Originally Posted by Excaliber

Those who draw SS are hardly parasites. If I came across your cooling cadaver and I'd take your wallet and never miss a stride.

I'm not referring to those who were extorted from each paycheck all their working lives and are now getting a terrible return on their unwilling and unwise investment.
I'm talking about all the non-productive parasites that only take from the Guv. The worthless ones you want to GIVE health care like they didn't already have it. We give them food, money, housing, clothes, attempt to give them an education, and in return they give us crime, drugs, and unrest. Sure GIVE them MORE! How can that NOT work out as well as all the rest has.

Dan40 · #14 (**permalink**) 10-01-2009, 03:42 PM

Quote:

Originally Posted by Jamo

Republican: I can step over your cooling cadaver and walk on without a second thought.

Democrat: If I came across your cooling cadaver and I'd take your wallet and never miss a stride.

Sounds like a horse and a horse!

Dan40 · #15 (**permalink**) 10-01-2009, 03:44 PM

Quote:

Originally Posted by Excaliber

Those who draw SS are hardly parasites. If I came across your cooling cadaver and I'd take your wallet and never miss a stride.

So "DIP" training is part of a 'liberal education! That 'no stride missed', must take practice!

Anthony · #16 (**permalink**) 10-02-2009, 05:23 PM

Quote:

Originally Posted by 427sharpe

Currently, the SS tax is 6.2% on the first $106,800 of income and 1.45% on all income thrown on for good measure.

Actually the SS tax is 12.4 %, or 15% with medicare added in. You need to factor in the additional tax payed by your employer, on your behalf, for work that you do for them, money that you really earn that should be included in your total wages. If you ran a business, and employed people and/or payed the self employment tax, you'd understand.

Most people have no clue, and blindly believe what they are told.