8 Reasons Why I Loathe Social Security

October 27, 2016 — 5 Comments

I know lots of people love social security. I know lots of people consider social security a successful government program. I disagree.

A comment left in my previous post about the 2017 changes coming to social security, inspired me to list out what I don’t like about the program.

So, here they are:

1. I don’t like the underhanded way Roosevelt went about passing the social security act in threatening to pack the Supreme Court.
2. I’m not a fan of the government confiscating our money with the promise of giving it back to us at some later date.
3. I don’t like the government confiscating our money, but still taxing us on it as if it was our money.
4. I don’t like the government taxing social security payments.
5. I don’t like the government deciding how much “other” income is allowed before social security payments become taxable. Those who are diligent in saving for retirement will be penalized.
6. I don’t like that social security is a pay-as-you-go plan, which means current recipients’ payments are funded by current workers. At the very least, the plan should have been set up as separate accounts.
7. I don’t like that the income subject to confiscation keeps going up each year.
8. I don’t like that social security has given many people a false sense of financial security, which leads many people to not save for retirement.

I’m sure there are other things I could find that I don’t like about social security, but this is a good start.

I feel the program could have been much better had it been set up as individual savings accounts rather than the pay-as-you-go plan. FDR knew what he was doing when he set it up the way he did. He knew if he set it up as a pay-as-you-go plan, it would never be done away with.

5 responses to 8 Reasons Why I Loathe Social Security

  1. er, regarding number one….are you outraged at the Republican monkey business
    regarding blocking Supreme Court nominees currently? Just sayin’……

  2. 1) Congress devices how many justices are on the court, not the president.
    2) SS is not run that way. It is simply a transfer tax on young working people, to old people.
    3) All forms of income should be taxed at the same rate IMHO
    4) see 3
    5) are you talking about personal exemptions and standard deductibles, or something else?
    6) eek, pay-as-you-go should be the only way government is funded. They should strive to have a balanced budget every year (no surpluses or deficits).
    7) There should be no caps on this tax at all — better yet, eliminate this side tax completely and fold it into income and sales taxes at the Federal level.
    8) agreed: SS will likely be gone by the time millennials make it to retirement age — people need to save accordingly.

  3. I turn 62 next month and am trying to decide when to start taking SS. On the one hand, if I wait a while, the monthly payments go up. On the other hand, SS will go broke at some point in the future. Any thoughts? At what point does the crossover occur, vis a vis the insolvency date?

    • @Sam: The “date” you are referring to is when SS-taxes do not bring in enough to pay SS-benefits (fully), but that is neglecting to account for the TRILLIONS in surpluses that SS has recorded on the books.

      One you grasp this, you’ll see that SS is just a money making scheme for the government (taxing the poor working class more than the elite/rich). Seriously doubt that Congress will ever give up this cash cow anytime soon, they will fiddle with SS caps and benefits to ensure it keeps generating as surplus for other government spending they rely on.

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