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Author: Goofyhoofy Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75801  
Subject: Re: How much for retirement? Date: 2/9/2011 11:23 AM
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1) You really need to take a look to see if there have been any prior occasions where Congress "chopped benefits". One example is the 1986(?) tax code revisions. That's where investment real-estate tax treatment was changed---thereby wiping out the investments for a huge number of middle-class people. And where they decided to tax SS payments. So now you pay tax on the money you put in AND on the money you take out.

I'll say again. The number of people affected by a change in the "investment real estate tax" was miniscule compared to half of all senior citizens - who vote.

So now you pay tax on the money you put in AND on the money you take out.

How do you pay tax on the money you put in?

2) Unless you feel like emulating Scarlett O'Hara ("I have always depended on the kindness of strangers."), it is financially irresponsible to depend on receiving SS for a significant percentage of your retirement income.

I don't, but clearly half of the population does. (That number hasn't changed since SS was started in the 1930's either.)

3) Reality will eventually intrude. Just where do you think the Feds are going to get the money to pay out to SS recipients?

Well, they could raise the income cap so that billionaires aren't paying 0.001% of their income while middle tax folks are paying 6%. That would pretty much take care of it right there. Or they could means test to some minor degree, with a graduated scale. Going around saying "YOU'RE NOT GOING TO GET ANYTHING" is simply irresponsible, in my view.

There is already a huge and ongoing deficit.

Yeah. Cut the military back significantly from the 600 bases they staff around the world, stop fighting useless wars in the Middle East, and make minor trims around the "discretionary" budget and you're back in high cotton. For some reason that isn't acceptable to a certain political segment. Wait til they find out that your alternative is chopping their Social Security checks, perhaps they will finally wake up?
 
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