Monday, July 30, 2007

Fixing Social Security

Gadabout has always taken interest in Social Security. As a young boy I recall my mother saying, “Social Security won’t be around when I retire.” Well, she was wrong. "Live it up, Mum!" Social Security is around, and it always will so long as we maintain a government.

The Federal Insurance Contributions (FICA) sets guidelines for employer and employee contributions for Social Security and Medicare. Both parties make payments of 6.2% for Social Security and 1.45% for Medicare: that equals 12.4 + 2.9 = 15.3%. That’s lots of cold hard cash, to be sure. The top income level for contributions in 2007 is $97,500; after that a person stops making payments. Some consider this ‘Regressive” arguing that higher wage earners dodge additional taxes. Others will take the position that is “progressive” since the amount deposited into FICA far exceeds what will be recouped in the out years. There is plenty of room for both punctilious pundits to square off on this issue--mostly until the end of recorded history.

The $97,500 cap is adjusted every year to flow with inflation, so at least the rich dodge that loophole.

Well, let’s talk about those 13 million illegal Mexicans running amuck and messing with our schools, hospitals and other government services. What happens if all those hard working Mexicans became Americans? I’ll tell you what will happen! They’ll start paying into Social Security--that’s what.

What happens if receipts into FICA exceed income to the system? Nothing, we’ll just fund it through taking on additional debt, increase retirement thresholds and freeze COLA levels. Remember, everybody dies at some point, so it is not an infinite problem.

Maybe it is time to rethink the cap on income levels to, let’s say, something like $250,000. Yeah, it might be an inflationary pressure, but the rich, in my opinion, need to pony up a bit more. I am certain that all of Rush Limbaugh’s fans wouldn’t like the idea much, but if they ever stopped to think about it, they are the people making less than $97,500 per year. Lemmings!

Want to save Social Security? Open the borders and tax the filthy rich!


Lee said...

Gadabout, I totally agree--rich should pay on what they earn. I think the first $100,000 is the hardest anyway, so why should they complain??? PLUS,If the illegal aliens had mandatory SS taken out, in order to collect, they'd have to become citizens--if not, Oh Well!!

Anonymous said...

Go Gadabout Jack! You're.. right on the money so to speak.

Lacy Camy

Alusna said...

"but the rich, in my opinion, need to pony up a bit more"....why Jack? Why do the rich owe you, or anyone, anything? In the final analysis, your're a commie aren't you? You're proposing forced re-distribution of wealth....

Gadabout Jack said...

Well, so long as my taxable income is less than $97,500, I am all for redistribution of wealth! If I make it to the big times, then I'll just jump the fence. Being a moderate is easy this way.

Alusna said...

It's always easy to spend money that does not belong to us, or wasn't earned by us, isn't it? I confess I don't understand people who think I owe them something because I worked and studied harder than they did, or made better decsions, or saved my money and invested it. Maybe I should just give up and go on welfare, and let you and Lee support me?

Anonymous said...

So glad you didn't leave.

ALUSNA: American Legation United States Naval Attaché or
ALUSNA: United States Naval Attaché.

I have trust issues still with Navy guys.It's the whole spousal support thing with getting dumped. Don't trust this guys opinion at all.

I have to agree with Gadabout Jack!!!

Liv Oslen

Anonymous said...

GJ, illegals do pay fica. Many of these folks have bootleg documentation with a SSN. Employers pay taxes (including fica) on these SSNs. Though the employee part never gets paid, the employer part does and the federal government does not refund any.

Gadabout Jack said...

Good point, but there are not 13 million of them!