No. of Recommendations: 7
BruceCM writes,

<<<intercst:The business man who needs roads to get his product to the consumer, or qualified employees who were educated in the public schools and colleges is "living off" the taxpayers who funded the roads and built the schools.

BruceCM: This activity, and hundreds of other such activities, are designed to generate increase business activity and from this, increase tax and use revenues ===> increased public capital expenditure. Not terribly efficient, but effective.

intercst: I'm obviously not questioning the need for roads and schools. Merely pointing out that they were paid by taxpayers who likely pre-dated the start of the business (i.e., somebody else)

<<intercst: Military members and retirees are "living off" the taxpayers who've funded a military/industrial complex that's more expensive than the next 7 highest spending countries, combined!>>

BruceCM: Yes, this is a cost of our freedom. Where would we and the allies for whom we provide much of their security, be today as a nation if this were not provided.

intercst: The military budget is a lot like health care -- we're spending at least twice as much money on it than we need to because of fraud, price-gouging, and featherbedding. But I concede it's providing a lot of high-paying jobs for somebody.

<<intercst: If you're over 65 and on Medicare, your FICA contributions over the years cover only a fraction of the $14,000 per year spent on the average beneficiary.>>>

BruceCM: A fraction? Hmmmm. Medicare A is fully funded, at least until 2034 (or thereabouts) from the Part A Trust fund. Part B is at least 25% funded by its users, although I suspect this is going up. What I paid/pay is much more than a 'fraction'.

It's only funded through 2034 because of the FICA/Medicare contributions of current workers (i.e., somebody else.) Prior to 1978, the Medicare portion of FICA was less than 1% and only rose to 1.45% by 1990 -- far short of what's required to fund an average 15 or 20 years of health care spending for current retirees who are the oldest and sickest portion of the population. I'm obviously not arguing against health care for seniors, just pointing out that they're 'living off others'. Outside of the folks who've been earning Top 5% salaries since they lifted the FICA-Medicare payroll cap in 1994, current retirees haven't paid enough into the system to fund their own care.

<<intercst: In the case of Obamacare, the internet (invented by Gov't funded DARPA) has provided middle-class people with enough information to do the kind of tax planning once reserved for the robber barons and hedge fund operators.>>

BruceCM: Ahhh, the power of rationalizing. They got it, so now its my turn! Sounds good! How about some welfare planning. It sounds like you might qualify. Wring as much out of the system as you can.

That's right! I'm sure I qualify for the kind of low income real estate tax break many well-to-do seniors take advantage of. But since Washington State has been enough of a tax haven for me I figured I'd forgo that one. I still want the city to have enough revenue to pave the road in front of my home. <LOL>

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.