RE: Sniping at the "elderly"

[Michael Jones <powderfinger99@yahoo.com>]

<<<
There have been a number of postings that imply that the "elderly"
are wealthy, getting more than they deserve and that they are
milking the system.
>>>

I don't think that this opinion is representative of the majority of
the posters.

<<<
I clipped an article some time ago that stated that an individual
who had paid the maximum payroll tax for 44 years and then retired
at 65, would get his or her money (including the employer's taxes
and interest) back in 18 years -- by age 83.  That is beyond the
average IRS life-span. Where are the facts beyond the belief that
current retirees are getting more than they deserve or paid for?
>>>

A new worker today paying the maximum payroll tax will need to
live to about 150 years to get back just the money he put in.
If the proposal to lift the cap entirely were ever passed into
law, the highest income workers would have to live at 200 years
to get their contributions back.

The current system gets worse for workers as time goes on. Consider
yourself lucky that it is even possible for you to get your 
contributions back in your lifetime.

<<<
I think we should stop this inter-generational sniping and
work to find a solution that doesn't means test benefits and
that will assure the solvency of the system for the near future so
that ALL will get back an equitable amount. And then work 
for a long term solution.
>>>

It isn't possible to change the system without someone or everyone
losing. Any change right now which forces me to give up benefits
or raises my taxes will cause my investment return to go more 
negative. If you are under 30, you can't win with this system.
You are in the hole from the beginning, even if the current system
stays solvent. 

<<<
There was an earlier posting that I believe stated that 
something like 96% of the problem would be solved if
there were no cap on the amount of wages that were 
subject to the SS payroll tax. Why should there be a cap
at all on the amount? By what criteria is it currently
capped at $60,000+?? 
>>>

Raising the cap will absolutely kill support for the system.
One of the basic tenets of the program was that the benefit
was proportional to the level of contributions. Forcing workers
to pay more will only make their return go more negative. The
additional money won't actually materialize in extra benefit.

Michael