Social Security: What a Rip-off!

[RandyWayne]

Originally Posted by Pastor Poster

Social Security, what a rip-off!

It really bothers me that I am paying in to something I will never benefit from.

The latest estimates are that SS is at a deficit of over three TRILLION dollars.

Neither one of the presidential candidates wants to tackle real refom, so SS will go bankrupt - or we will need to keep raising taxes astronomically.

Current indications are that, for SS to stay solvent, the three tax brackets would neeed to be raised as follows.

Low income would be taxed at 25% of income.
Middle class would be taxed at 66% of income.
Wealthy would be taxed at 80% of income.

Insane!

The problem with those percentages is that they would bring FAR less money into the system than the current ones do!

Virtually all liberal economists base estimated income from taxation on a static model where behavior and wealth generation is unchanged based on tax percentages. They see the same amount of "wealthy" people and those becoming wealthy, who are paying 80% in taxes as does exist with the current 39% bracket. They don't realize that there would be FAR LESS wealth generation with such high taxation.

Imagine if they decided to tax 100% of everyone! Every single dollar and cent that people made would be sent to the government. The government would enjoy a bonanza the first year! But zilch the second... and third... and forth.... The issue is the same with lower tax percentages, but just a bit more hidden.