Posted on 02/26/2004 7:27:30 PM PST by qam1
SEATTLE - Get ready to bend over, baby-boomers.
In essence, that was Federal Reserve Chairman Alan Greenspan's message to everyone born between 1946 and 1964.
At 78 years of age, Greenspan's too old to bend over himself, so he figures it should be my generation that grabs its ankles.
Seems Alan G. is wringing his wrinkled hands over the 77 million baby boomers that'll begin retirement in four short years.
'Yikes!' said the man who surely collects his Social Security check every month, 'We've gotta do something 'cause there's not enough Social Security money to give us any security.'
And Alan G's proposal?
Well rather than raise taxes, why not just CUT the benefits all us boomers would be getting when we retire?
The other Greenspan brain burp?
Keep pushing the age of retirement HIGHER.
That means while we could still retire at age 65, we wouldn't get those DECREASED Social Security benefits until we're, oh let's say 104!
Hey, here's an idea Alan.
Why not suggest the president spend less and get the deficit lower.
Maybe advising him to quit giving tax cuts to his rich friends.
'Cause I'll tell ya Alan, my generation is tired of bending over for yours.
Want to share your thoughts with Ken Schram? You can e-mail him at kenschram@komo4news.com
Ping list for the discussion of the politics and social aspects that directly effects Generation-X (Those born from 1965-1982) including all the spending previous generations (i.e. The Baby Boomers) are doing that Gen-X and Y will end up paying for.
Freep mail me to be added or dropped. See my home page for details.
BOHICA (bend over, here it comes again)
Here's another. Gut the program and give us our damned money back.
What Social Security Trust Fund
"The U.S. Supreme Court ruled in Fleming v. Nestor (1960), 363 US 603; that there is no Constitutional right to Social Security benefits. Social Security benefits can legally be cut or eliminated at any time, and beneficiaries have no recourse. The Court held that, "To engraft upon the Social Security System a concept of 'accrued property rights' would deprive it of the flexibility and boldness in adjustments to ever changing conditions which it demands."
HELVERING v. DAVIS, 301 U.S. 619 (1937)
- Title VIII(Social Security Act), as we have said, lays two different types of tax, an 'income tax on employees,' and 'an excise tax on employers.' The income tax on employees is measured by wages paid during the calendar year. Section 801 [26 USC 3101]. The excise tax on the employer [26 USC 3111] is to be paid 'with respect to having individuals in his employ,' and, like the tax on employees, is measured by wages.
- . The proceeds of both taxes are to be paid into the Treasury like internal revenue taxes generally, and are not ear-marked in any way. Section 807(a)[26 USC 3501]. There are penalties for nonpayment. Section 807(c), [26 USC 7203].
Nothing has changed todate inspite of all the political rhertoric about "lock boxes" and "Trust Funds" for SS/Medicare funds, the tax that is supposed to be levied for SS/Medicare is indistinguishable in operation from what we normally refer to as the Income Tax, and is paid into general revenues in just the same manner.
THE SOCIAL SECURITY TRUST FUND FRAUD
CRS Report for Congress (98-422 EPW)
Social Security: and the Federal Budget:
"Its taxes like all other federal funds flow into the U.S. Treasury and its benefit payments flow out of the U.S. Treasury. The Treasury Department issues federal securities to the Social Security trust funds to reflect receipt of these taxes, and redeems securities from the trust funds to reflect Social Security expenditures, but the money itself flows to and from the Treasury."
"Taking the Social Security trust funds "off budget" has not changed how Social Security funds are handled. They are treated the same way today as they were in 1937 when Social Security taxes were first levied -- the tax receipts flow into the U.S. Treasury and benefit payments flow out of the U.S. Treasury. The Treasury Department issues federal securities to the Social Security trust funds to reflect the receipt of these taxes, and redeems securities from the trust funds to reflect Social Security expenditures, but the money itself flows to and from the Treasury. "
"While the trust funds have an important role in monitoring the finances of the program and maintaining its fiscal discipline, they are basically accounting devices. The federal securities they hold are not assets for the government. When an individual buys a government bond, he or she has established a claim against the government. When the government issues a bond to one of its own accounts, it hasn't purchased anything or established a claim against some other entity or person. It is simply creating a form of IOU from one of its accounts to another. It certainly establishes legal claims against the government for the Social Security system (i.e., it is a legal form of indebtedness of the government and does count as part of the federal debt; see Table 3 on the next page), but the system is part of the government. Those claims are not resources the government has at its disposal to pay for future Social Security claims. Simply put, the trust funds do not reflect an independent store of money for the program or the government, and taking Social Security "off budget" did not change this. "
I like that other poster's idea; LET US KEEP AND INVEST OUR OWN DAMN MONEY.
When a snake eats a rat, there's a bulge in the snake's body that moves downward. The same is true in demographics. The rat in that snake is the population bulge of the baby boomer generation. All it takes is a pencil and paper and the ability to do simple math to realize that Greenspan spoke the simple truth today.
When these retirees reach 65 and beyond, it will take federal taxes at the rate of upwards of 50% for EVERYBODY who still holds a job, if Social Security benefits stay both at the current levels and kick in at the same ages. Couple that with the fact that all of us are living longer and longer, and SS as we currently know it will fail grossly and totally. The problem is a no-brainer to see.
Solving the problem is much more difficult. Witness how quickly professional politicians of both parties ran screaming into the night, rather than recognize the plain, unvarnished truth that Greenspan stated today.
And it is precisely the fear of elective backlash from fools like Ken Schram that has made SS the "third rail" of American politics.
It just so happens that, when I get into Congress, I will NOT fear this or any other issue in Washington. Once you've had a couple of grandchildren and a couple of heart attacks, as I have, you lose patience with standard political bullsh*t. Whether I can successfully contribute to a solution of the SS problem, I do not know. But whether I will search out the limited number of other honest and able politicians in Washington (a minority, but maybe an effective one), have no fear. I WILL do exactly that.
Congressman Billybob
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