RE: Impact on other programs, and tax considerations

["Ronald F. Vetter" <rfvetter@ridgecrest.ca.us>]

> SS was not designed to be tax exempt when it was created. That
was merely a ruling by the Treasury Dept (who is in charge of the
IRS) later as the first benefits were paid. The tax exemption was
not considered in the design of the benefits or associated formulas.
Nor was the subject statutory until 1983, when SS benefits were
first partially taxed.

SS was not designed to be retirement funding. it was insurance for
the few.

The taxation of the benefits and most of the features of current
SS "system" are grown like topsy or the horse designed by comittees.

The escalation of the basis of the entitlement is the major
mathematical error in the process:

	first foolish part is the annual increase of entitlements
	-this is an introduction of income-prices inflation spiral

	the use of an index that is constant basis is mis-used by
	using the incorrect mathematics in the "COLA".

This incorrect (non valid) calculation is worsening the divergence
of incomes every year - by making the payments increase exponentially
which favors the highest paid the most.

Since the payments are made using this non-valid increase formula
every year, the federal government pays out much more than it
should. Much of the revenues is newly printed money with no value
intrinsically, so the inflation of incomes creates deflation of
the dollar.

please consider the folly of the SSA trustees report:

http://www.ridgecrest.ca.us/~rfvetter/pages/avgwgepj.html

Ron Vetter 
rfvetter@ridgecrest.ca.us
http://www.ridgecrest.ca.us/~rfvetter