More on social security

In case you're interested, here are a couple clippings I've been thinking about regarding social security. First, from Talking Points Memo a very good point about how social security is insurance. You can save for retirement, but you don't know how long you'll live. If you end up living to 120, will you have enough to pay for it? But Social Security will still be there. Not so if Social Security is privatized-- then you'll only have what money has been accumulated in your private account.

Second, slacktivist discusses more of the history of Social Security, and how Reagan and Greenspan worked to save it. They increased payroll taxes above what was needed, in order to create a Social Security fund that could be used when the baby boomers retire. Of course, the government has been borrowing every penny of this fund, and will need to start paying it back in a few years. Bush wants to forget about all that money that's owed into the fund and start over again with private accounts. That means the first $87K of everyone's income has been taxed at a higher rate than the rest FOR NO REASON.* If a "do-over" happens we won't get that extra tax back. For Bill Gates and George Bush that doesn't amount to much, but if you make less than $87K, it should matter to you. You've been paying extra taxes for the past 20 years. For no reason. I don't know about you, but I want back every penny of my payroll tax that didn't go directly into Social Security checks for the elderly.

*After the first $87K there is no payroll tax, so the wealthy pay a smaller percentage of their income to Social Security. When tax burdens are calculated Social Security tax is not included, because it is something you are expected to get back eventually.