Posted by Sir Four at 11:44pm Feb 9 '10I agree that regarding the program as a national retirement plan is very flawed. I'd prefer eliminating the special tax for it and rolling the cost into the income tax (obviously income taxes would go up, but due to their progressive nature the average working Jane will come out ahead). Then treat it as straight welfare, not retirement savings. Only those who need it would get it. Americans will be expected to save for retirement, and those who come up short will have the safety net.
Of course, I don't believe for a second this is politically possible. The old folks collecting SS (and those getting close) want what they've paid in for, and all of 'em have too much pride to see themselves taking "welfare."
A simple reduction of benefits for wealthier retirees (without other big changes) could be doable, except the old bastards vote with a vengeance. It would be politically difficult to do any cuts at all.
I disagree with the notion that Social Security won't be around for our generation. Anyone who thinks that is silly. When SS no longer takes in as much as it pays out, several decades hence, it will still be able to pay out a large majority of what is promised. And the probability that another "fix" will be enacted to extend the life of SS beyond what is currently forcast is quite near 1. The reason you save for retirement isn't to account for SS not existing. It's to live a higher standard of life than SS can provide.
Of course, I don't believe for a second this is politically possible. The old folks collecting SS (and those getting close) want what they've paid in for, and all of 'em have too much pride to see themselves taking "welfare."
A simple reduction of benefits for wealthier retirees (without other big changes) could be doable, except the old bastards vote with a vengeance. It would be politically difficult to do any cuts at all.
I disagree with the notion that Social Security won't be around for our generation. Anyone who thinks that is silly. When SS no longer takes in as much as it pays out, several decades hence, it will still be able to pay out a large majority of what is promised. And the probability that another "fix" will be enacted to extend the life of SS beyond what is currently forcast is quite near 1. The reason you save for retirement isn't to account for SS not existing. It's to live a higher standard of life than SS can provide.
On Social Security - Sir Four