A look at Social Security

Hi

Let's get it straight, Social Security is not an entitlement, it has been paid for by our money. Senior citizens have been paying since the 1930's, it is not our fault that the politicians have let the system rot.

The question is how do we fix it, and at what cost. Most people are aware of the fact that we pay this "tax" as we earn. If you are employed your employer must match your contribution. If you are self employed, you pay a partial add on which is meant to offset the portion which the employer would have paid. Under President LBJ the government decided to put the social security funds into the general revenue funds. This proved to be a bad move. The politicians got their hands on the money and did what politicians always do, they spent it.

The water has been spilled from the bucket, now we must try to fix the problem.

The first step is a partial privatization of the system. This can be accomplished by allowing younger participants to opt to handle their own account. A partial amount of the social security payment together with the employers share would be put aside into a non spendable account. This account would be tax deferred. The way this helps is as follows:

The system would have fewer payouts when the newer people retire. These individuals would have paid less into the trust fund and would receive a lower monthly payment from the trust. The lower amount would be offset by the use of the closed account. The funds in this closed account would be invested and the return would be greater than the return on social security.

As an added bonus the retiree could pass any balance in this so called closed account to his/her heirs. Statistics show that the fund balance woud more than offset the lower monthly social security payout.

In theory every body wins, so why hasn't congress acted to pass such legislation? Simple, congress wants the money to spend and grow government. Where is the greed? Wall Street or congress. When you vote please consider the reason why candidates choose to run. Who are they looking out for, the people or themselves?

There are those that are not greedy or se;f serving, I am talking about our brave military. Please remember them in your prayers.
GOD Bless