Social Security Benefits, Social Security Taxes

Filed in Tax, Savings by on December 8, 2010

There is so much wrong with Social Security benefits and Social Security taxes that each new thought seems like a distraction from more serious problems. This is the biggest threat to our economic solvency ($350,000 for every man, woman and child), but It will now get far worse.

Social Security began with a 65 year old retirement age. At the time, our expected lifespan was about 65. By that standard, the Social Security retirement age should be around 80, but there is tremendous resistance to increases.

Social Security taxes and Medicare taxes are so inadequate, for the current Social Security benefits and Medicare benefits, that we are quickly increasing a $109 trillion deficit in unfunded liabilities for Social Security benefits and Medicare benefits. According to the Social Security and Medicare Trustees, we need to double these tax rates to properly fund these programs.

Obama and Republicans knew it was vital to fix this problem. So, what is the first thing they did?

They agreed to cut Social Security taxes by 2% (6.2% to 4.2%)! This is the same type of stimulus stupidity that already gave us almost $3 trillion in useless Obama deficits. In fact, the cost of this 2% reduction actually will be far more than anyone projected, as my Buy Social Security Benefits post will soon discuss.


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