Wednesday, August 25, 2010

well excuse me for living


I'm an AARP- card holding member of the baby boomer generation.  But I think we were badly misnamed.  We should have been called the DIYD2 generation:  damned if you do and damned if you don't.
We:
  1. were drafted to fight an illegal and unnecessary war that was escalated on entirely trumped up charges.  Those who resisted the draft were branded as criminals or degenerates. those who obeyed the law and  fought came home to reduced VA benefits to deal with the illness and injury of war and were blamed by the American people for fighting an unpopular war they didn't start.
  2. entered adulthood when few jobs were available. Responding to the  lack of opportunity, we adapted with alternative lifestyles.  Those alternative lifestyles, which were reasonable responses to the economic conditions of the time, to shrinking natural resources and to concern for a rapidly degrading natural environment were and are ridiculed for being far outside the mainstream. 
  3. were required by law to pay into Social Security for our entire working career. That money  paid  for others' retirement needs. And the surplus our generation paid into the Social Security system was invested in our interest into US treasury bonds to pay current operating expenses of the government.  Social Security as it was originally designed should have collected that surplus and used it to cover periods when income excedes outflow.  The government owes the money to people who paid in.

    Fast forward to 2010. Alan Simpson who served from 1979 to 1997 as a United States senator from Wyoming is now charged with finding a solution to the disappeared funds. 
    His helpful comment: Social Security is "like a milk cow with 310 million tits."
    I'd just like to remind him of the law here: 
    If you work for an employer, 6.2% of your wages is withheld and your employer deposits the withholding, along with its 6.2% matching contribution, with the government for the Social Security programs. In 2010, the employee tax and matching contribution stop after the first $106,800 of wages. In addition if you work for an employer, 1.45% of your wages is withheld and the employer makes a matching 1.45% contribution to the Medicare program, making the total withholdings at 7.65% (6.2% OASDI and 1.45% Medicare). However, all wages are subject to the Medicare tax; there is no ceiling.

    If you are self-employed, you pay 15.3% of your taxable income into the social security and Medicare programs, up to the first $106,800 of income. You continue to pay 2.9% of your taxable income into the Medicare program for your earnings above $106,800. Although the impact on you is greater because you pay twice the rate of employees, you can deduct half of your federal self-employment taxes from your income when it comes time to pay your federal income tax.
    Some have described Social Security as a big Ponzi scheme.  And in a certain sense, it is. The young provide for the needs of the old so that they in turn will be provided for.   Ponzi schemes hold up as long as people continue to pay it forward. Here's the way that Social Security isn't a Ponzi scheme.
    You can't work most jobs in the USA without participating by paying into the SS system.  Whereas a real Ponzi scheme is voluntary and people invest out of greed, we have paid in for our entire lives because by law we were required to.
    So greedy, deluded  cowsuckers the baby boomers are NOT.

    Alan Simpson doesn't seem to have anything constructive to add to the discussion on Social Security.  The name calling isn't advancing the conversation, so  why not replace him with somebody who is up to the task.  Why again blame the DIYD2, the  people who did what was required of them and got no thanks to date?  

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