Most of us would agree that the continued deficit that the United
States government is an unhealthy situation. Unfortunately, when topics
such as this are discussed, they usually become a battle of distortions
and political rhetoric, as well as people on opposite sides of the
political spectrum blaming each other for the cause of the problem. We
all know that this deficit should and must be addressed, and the process
must begin immediately. However, the rhetoric of blaming Social
Security and Medicare for this problem is at best unfair, and at worst,
demagoguery.
1. Unlike most government spending which are financed out of the General Fund, and ideally come from taxes, fees, etc. received by the government, Social Security and Medicare both charge individual taxes, and every employee, business and self employed individual with earnings pays taxes supposedly to pay for this. Isn't it funny that just a short time ago, Senator Harry Reid stated that these programs did not contribute to the federal deficit, yet now we are constantly hearing chatter about how much they cost. In case you do not realize it, every self employed person pays approximately fifteen percent (15%) of his net before tax earnings for these two programs, in addition to all his other taxes. Employed individuals and their employers split this cost, also based on their before tax earnings. These earnings are actually taxed three times in most cases, once for the taxes (Social Security and Medicare) themselves, then for regular income tax (Federal, State and local, if applicable), and then, for most people, once again when they are distributed at retirement. How is that an entitlement? Isn't that a rather stiff tax?
2. Let us not confuse making these two systems better and more efficient, with this deficit issue. While efficiencies and improvements should be made, how dare politicians discuss them and lump them in with the overall debt.
3. In 2001, when President Bush assumed office, he inherited a surplus budget. Predominantly because of a combination of factors that took place in 2001, most notably the 9-11 tragedies, the United States embarked on a huge amount of spending to beef up security both here and abroad. In addition, an overall slowdown in the world economic situation, ever- increasing joblessness, etc., exacerbated the situation, and created a burgeoning federal deficit. Upon taking office in 2009, President Obama continued and expanded the bail out programs begun by President Bush, and the deficit kept expanding. This was the real cause! Back in the 2000 campaign, former Vice President Al Gore was scoffed at for speaking of a "lock box" to protect the Social Security system. This, of course, was never done, and the monies collected from Social Security and Medicare taxes have simply been commingled with the rest of the general fund revenue. Worse than being commingled, the government supposedly borrows from Social Security, and issues the equivalent of an IOU, which they have never made any attempt to repay.
While people who have paid into these systems their entire lives are entitled to receive in their golden years what they were promised, that is far different from the usual definition of an entitlement, which is often an unfunded mandate. I implore each of you to think about fairness and integrity, and implore our elected officials to once and for all treat these two programs separately from the rest. In recent years, the age that someone can receive full benefits has gradually crept up, which is acceptable because of longer life expectancies, etc. I am not saying not to consider tweaks and improvements to these systems, but rather that we simply do not unfairly lump them into the overall deficit discussion.
You've paid into this system all your life, expecting to have it there for you, when you retire. Don't request, but demand Social Security be preserved, and these false accounting and rhetoric - driven methods are not acceptable! Have you ever wondered what happens when someone, without dependents dies younger, and therefore there are little to no disbursements made? This system is tax - driven, NOT a drain on the rest of the system. Merely because government representatives sometimes play games, rather than responsible budgeting, and it can print money, we, the people, cannot merely print money when we need it!
1. Unlike most government spending which are financed out of the General Fund, and ideally come from taxes, fees, etc. received by the government, Social Security and Medicare both charge individual taxes, and every employee, business and self employed individual with earnings pays taxes supposedly to pay for this. Isn't it funny that just a short time ago, Senator Harry Reid stated that these programs did not contribute to the federal deficit, yet now we are constantly hearing chatter about how much they cost. In case you do not realize it, every self employed person pays approximately fifteen percent (15%) of his net before tax earnings for these two programs, in addition to all his other taxes. Employed individuals and their employers split this cost, also based on their before tax earnings. These earnings are actually taxed three times in most cases, once for the taxes (Social Security and Medicare) themselves, then for regular income tax (Federal, State and local, if applicable), and then, for most people, once again when they are distributed at retirement. How is that an entitlement? Isn't that a rather stiff tax?
2. Let us not confuse making these two systems better and more efficient, with this deficit issue. While efficiencies and improvements should be made, how dare politicians discuss them and lump them in with the overall debt.
3. In 2001, when President Bush assumed office, he inherited a surplus budget. Predominantly because of a combination of factors that took place in 2001, most notably the 9-11 tragedies, the United States embarked on a huge amount of spending to beef up security both here and abroad. In addition, an overall slowdown in the world economic situation, ever- increasing joblessness, etc., exacerbated the situation, and created a burgeoning federal deficit. Upon taking office in 2009, President Obama continued and expanded the bail out programs begun by President Bush, and the deficit kept expanding. This was the real cause! Back in the 2000 campaign, former Vice President Al Gore was scoffed at for speaking of a "lock box" to protect the Social Security system. This, of course, was never done, and the monies collected from Social Security and Medicare taxes have simply been commingled with the rest of the general fund revenue. Worse than being commingled, the government supposedly borrows from Social Security, and issues the equivalent of an IOU, which they have never made any attempt to repay.
While people who have paid into these systems their entire lives are entitled to receive in their golden years what they were promised, that is far different from the usual definition of an entitlement, which is often an unfunded mandate. I implore each of you to think about fairness and integrity, and implore our elected officials to once and for all treat these two programs separately from the rest. In recent years, the age that someone can receive full benefits has gradually crept up, which is acceptable because of longer life expectancies, etc. I am not saying not to consider tweaks and improvements to these systems, but rather that we simply do not unfairly lump them into the overall deficit discussion.
You've paid into this system all your life, expecting to have it there for you, when you retire. Don't request, but demand Social Security be preserved, and these false accounting and rhetoric - driven methods are not acceptable! Have you ever wondered what happens when someone, without dependents dies younger, and therefore there are little to no disbursements made? This system is tax - driven, NOT a drain on the rest of the system. Merely because government representatives sometimes play games, rather than responsible budgeting, and it can print money, we, the people, cannot merely print money when we need it!
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