The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/oh-before-i-leavespeaking-of-quotbad-30635598.aspx

Subject:  Re: Higher Medicare premiums for Top 25% Date:  4/14/2013  4:53 PM
Author:  ptheland Number:  72021 of 76237

Oh, before I leave...speaking of "bad math", this sentence totally ignores the $65,000 in Medicare payments made during my working career ( and all the money those contributions could have made during the last 40 years

Let's address that one. It's coming from a highly distorted view of Medicare (and Social Security).

All that money you paid in over the years did not go into some kind of an account for your retirement benefit. It was not set aside for your future medical expenses.

It was - and remains - a tax. Nothing more, nothing less. The government has used its taxing authority to levy this tax on wages and other earned income.

The government then used this stream of tax money to pay a kind of welfare benefit to those that qualify. Currently, in the case of medicare, those that qualify are simply 65 years of age or older, or disabled.

So your tax money for the last 40+ years was spent on medical care of the elderly and disabled during those years.

Having now reached the age of 65 yourself, you meet the eligibility requirements and qualify for this welfare benefit.

So congratulations. After years of working hard and paying taxes, you're now on welfare. :-)

--Peter
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us