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Subject:  Re: Don't worry about boomers killing the market Date:  8/10/2006  5:58 PM
Author:  JAFO31 Number:  53071 of 88058


<<<<"Social Security isn't gratitude, it's a debt.">>>>

"Crazy talk... Social security is an income tax, pure and simple."

Sort of. Unearned income (including without limitation capital gains) is not taxed for social security, nor is earned income above some level (which level has changed over time and which is currently subject to annual adjustment for inflation.

"When you made your earned money you were taxed on it. That money was then spent by YOUR government, who YOU hopefully participated in voting for (except for time when voting age was above minimum working ages). Seems to follow the rules of taxes to me. Did you not enjoy the excess spending by YOUR government?"

You are conflating two subjects. For many years SS was essentially pay as you go, so what excess spending are you referencing. In addition, for many years social security was on budget.

It was not until reforms during the Reagan years that social security was moved off-budget and huge social security surpluses were used to pay for excess spending.

I have a relatively recent post about the subject, with citations, but cannot locate the post, sorry.

"By enjoying the excesses of government the "debt" has been repayed."

Not really.

"SS needs to be called what it is, a welfare system for people too old to work who would be on the street otherwise."

Social security is a welfare system, but it is currently for all those who contributed and there is no requirement that the recipient would otherwise be on the street.

"Historically people have received far more from SS than they have put into it, even factoring inflation."

Gross dollars or real dollars?

Aggregate real dollars or real dollars adjusted for opportunity cost?

Regards, JAFO

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