Social Security... the solution..

[Peacetrain]

Usually I do not buy into simplistic answers..but quite frankly..before we go another step.. there is a simple answer to social security.

Raise the caps.

This is from 2005.. look down at the chart.. it is a real eye opener.
http://www.retiredamericans.org/ht/display/ArticleDetails/i/1433/pid/473

Medicare.. is another question all together.. the republicans being the total incompetents that they are when managing money.. put in place the largest entitlement money outlay since the Depression, as a unfunded and a direct drain on the budget.

It's is as simple as this.. roll that medicare benefit if we are going to keep it into a social secruity type of money cap coming out of everyone's paycheck.

Now that might be the first step to that slippery slope for a gov. funding of insurance for all of us coming out of our paychecks.. but keep that one under your hat ;)

[BrklynLiberal]

1. and then..remove the money cap for Medicare AND social security deductions.

[DURHAM D]

2. If the cap is removed the maximum benefit will have to be increased.

[slipslidingaway]

7. Yes, the fact that there is a cap on both sides needs to be considered. n/t

[slipslidingaway]

3. What is the problem? n/t

[busymom]

4. Well, some people pay all year, but

are paying only a small amount of money each month.

President Obama might only pay until March or so, but I bet his 'cut' into ss is ~~1700-1800/month or so.

As far as I understand ss is also a system where you get an amount based on what you pay in...so pay in more (like make the prez pay all year) and he gets to collect more later. You haven't really saved money.

Another thing to consider is that people might wait until they stop paying ss for the year..and maybe in October, November and December they use that extra money to buy furniture, a new TV, etc. That money will no longer be in the economy as an economic stimulus.

Man, just think of what $1700/mo extra could buy you for a couple of months...and how that helps businesses.

[NYC_SKP]

5. I agree. n/t

[slipslidingaway]

6. "Why lifting the cap on Social Security is the wrong solution to the wrong problem"

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=7611310&mesg_id=7611310

"Each time an article on SS is posted at DU, there's always a greek chorus chanting "just lift the cap!"


First, some aren't aware that SS is *required* (original SS Act & amendments & 1983 amendments) to regularly review SS financing & raise the cap to cover 90% of total wages.

Currently the cap is $106,800.

But it was $102K in 2008, $97.5K in 2007, $94.2K in 2006, etc. It rises regularly:

http://www.socialsecurity.gov/OACT/COLA/cbb.html


"Second, why raise the cap now, when SS is running SURPLUSES?

......Currently, the BIGGEST problem with Social Security's finances is that certain interests don't want to be taxed to repay the Trust Fund.

Some people say, "Well, that's just 'us' repaying 'us,' so what's the difference?

There's a BIG difference.


SS taxes were taken from workers' WAGES, & only WORKERS' WAGES -- from the bottom 90% of total wage income.

Excess collections were borrowed into the general budget, which is supposed to be funded from INCOME TAXES.

Income taxes tax both WAGES & CAPITAL INCOME -- capital gains, interest income, profit income, & the like.

The richer one is, the larger the percentage of income they get from CAPITAL. SS taxes don't touch capital income.

Additionally, the richer one is, the easier it is to adjust one's income sources. The super-rich don't, typically, NEED to take much of their compensation in WAGES unless they choose to...."

[Peacetrain]

12. The economy is 90% perception.. and the quickest way to

relieve anxiety.. is to provide a solid base 50 years out.

Also.. this is something we do not think about.. whether right or wrong.. our bond system that has other countries lending to us, to keep us afloat.. is based on the fact that a steady stream of money is available aka social security.. that is what we own now.. bonds.. not hard cash in some stashed away vault.

It the country goes belly up, there is not cash to repay social security..

[slipslidingaway]

14. SS has enough money to pay 100% of benefits for the next 30 years...

what is the problem with SS?

[slipslidingaway]

8. knr - because I think it needs more discussion. n/t

[Samantha]

9. In connection with the commission that has just been formed

I can't help but think if everything is on the table, the public should insist that government pensions also be put on the table. That specifically would include those in the Congress. Whatever action the Commission ultimately takes should ultimately be forced to be applied to those receiving government pensions as well.

After all, what is the difference? Sure, employees of the government often contribute to their own pension, but those receiving Social Security contributed as well by paying their taxes. And if "entitlements" must be cut, that should include all "entitlements" right? including pensions of government employees.

The reason I like this idea is because I think it will make those in Congress revolt if they think the same rules concerning cuts to Social Security will be applied to their retirement packages as well. That seems to be the rumor as to why they opposed health care reform on the scale they did.

Sam

[dwilso40641]

13. Fed retirements

Treat them like they treated auto workers and their benefits, no more medical for life, retirement cut by two thirds. let them go on Medicare and Social Security like the rest of us.

[hollowdweller]

17. I think as democrats we should be for expanding defined pensions

Not further cutting them for anybody.

I really find the whole hating of union workers or other people who have good benefits by fellow workers disgusting, and feel it shows how the right wing has tried to turn workers against each other.

If we don't hang together we hang separately. As long as we have CEO's making millions PER YEAR, and as long as our defense budget is such a large percentage of our budget there is no reason for us to focus on trying to cut a meager pension of some public employee. That is only playing into their game.

[Thothmes]

10. Medicare

Somehow I go the impression that it was Lyndon Johnson, a Democrat, and the 89th Congress, with Democrat majorities in both houses that enacted the Medicare legislation. Correct me if I am wrong. Medicare was not a republican program.

[Peacetrain]

11. The Medicare Prescription Benefit under medicare and unfunded!

This is probably one of the least understood things going..

http://en.wikipedia.org/wiki/Medicare_Prescription_Drug,_Improvement,_and_Modernization_Act

It needs to be funded though.. somehow, someway or it will completely destroy medicare.. which is what the republicans wanted in the first place..

[Thothmes]

16. Your original statement was "Medicare"

not medicare Prescription benefit

[Peacetrain]

18. Well if it is part of medicare.. then what else could it be but medicare??

[mwooldri]

15. I say don't raise the caps but do this instead...

Above the cap institute a smaller percentage tax above the cap threshold.

I don't know what the cap is right now but let's say it's $200k. Your first $200k for SS gets taxed at say, 6%. Everything over $200k gets taxed at 0.5%.

You could

How the teabaggers would compute that math would boggle me...

Mark.

ps I'm all for scrapping Social Security and Medicare and replacing it all with National Insurance which covers what Social Security and Medicare does today and then some more (healthcare for everyone? Not a tax but everyone pays a national insurance? After all everyone has to have insurance and everyone has to contribute, right???)