RE: Don't Blow Away Social Security

[Javier Jimenez <jimenj@yahoo.com>]

>>>>>>>>>>>>> James Wrote:
>From: Al Abbott 

>>>>That 12 percent put into private retirement accounts (like the
Cato Institute's plan) would provide much better support without
adding taxes on other people. 

But you ignore the fact that CATO supports continued paying of
current SS benefits, and 'recognition' bonds for previous FICA
taxes paid. Without the FICA tax, that cost ultimately falls on
the general taxpayer. Also, CATO supports a means-tested safety
net for those under their new private system. Who pays for that?
There is no free lunch. Your cost of the taxes to pay for these
two items will likely yield you a '-100%' rate of return on those
taxes. Any 'rate of return' comparison between the current system
and the proposed CATO version must avg in that '-100%' return to
be an accurrate comparison.
<<<<<<<<<<<<<<

1) The fact that past generations suckered up to politicians and
allowed them to create and expand SS to the level that it is today,
does not mean that we have to stick with it.

2) It is our moral obligation to fix the mess now that we recognize
it exists, so as not to leave future generations, those that cannot
vote, don't pay taxes, and don't even know what they are getting
into, foot the bill for our inaction.

3) Since we have an opportunity now to move to a more progressive
retirement system for all workers, and at the same time save future
generations from high payroll and income taxes in exchange for low
or no benefits, we should do it because it is our responsibility.

4) Since our past politicians made contracts that current and coming
retirees bought into and is our responsibility to pay, we should
swallow the pill and move on.  In short, I'm sure no one likes
getting stuck with a bill that we had nothing to do with, but we
have an opportunity to pay for it, and stop creating new ones for
our young workers and our innocent and helpless children.  Wake
up, smell the coffee, and get over it, your parents and grandparents
were irresponsible enough to accumulate the debts for us to pay,
are we to continue robing future generations for our comfort? or
can we have the guts to say "the buck stops here"?

Like it or not, the Cato Institute's plan does that.  The buck
stops with us, we pay the unfunded liabilities of SS with the
surpluses, move out of government controlled pay-as-you go unfunded
retirement and start funding our retirement and allow our innocent
and helpless children a clean slate for their future prosperity.
Not only does the play allow for current retirees and the baby
boomers to get their promised benefits, but it allows us, the
younger workers, and all future generations to take charge of our
retirement for greater freedom and security away from government
dependence.