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Our elected officials have repeatedly proven that if there is a large cash flow going into the government they will steal it and use it to buy votes. Until we can put some accountability into the process, we should not pay one cent more for any tax, for any reason.

A few years back Dan Rostenkowski, who came from a long line of Chicago hoods, was the chairman on the house ways and mean committee. He and his band of theives came up with the ultimate fix for SS which of course was a tremendous tax increase. They swore on their honor that there would never be another tax increase, that this would fix it. They went on to tell more lies about how the SS fund would be sancrosanct, that it would never be touched.

About three months later the savings and loan debacle became so rotten that it could no longer be ignored. For those of you that are to young to remember, the S&L situation was caused by S&L's making obscenely large contributions to our elected officials, who in turn used the money to buy votes via the media, and the officials reciprocated by effectively removing the rules for the S&L's. The S&L's could and did make government backed loans on just about any pretext they chose. Well the house of cards finally fell.

To make things rougher there was a law called the Graham Rudman act that said if government spending exceeded revenue there would automatically be severe spending limitations. Translate that to mean no pork for politicians to buy votes with.

So our fearless leaders came up with a plan. They would "borrow" money from the newly invigerated cash flow from SS at no interest and no due date on the loan so they continue to buy votes via pork barrel projects and make it look like they were being financially responsible.

This process continues right up to today. The "loans" embezzled from the SS fund are not even counted in the national debt. President Clinton rants about saving SS with our non-existant $80 billion surplus and then submits a budget with a $150 billion deficit.

Politicians can NOT be trusted around money. They will find a way to spend it to buy votes! Sending more money to Washington under any pretext will only increase the problem.

If we let the government invest the SS fund they will give the money to the investment groups the make the biggest political contributions. It will not be based on the track record of the investment groups. Politicians want money to buy votes. They will do anything to anybody in order to get more money to buy more votes. History is replete with examples.

I know I have read advice on this site many many times along the line of do not invest more money in your losers. Go find a better stock and spend it on that.

The better stock in this case is to keep the money out of the reach of politicians and invest it in equities. I would propose a new Roth IRA type of account that was beyond the reach of politicians and ambulance chasing lawyers and without a ridiculous $2000 limitation. If there is a limitation is should at least be equivalent to what we currently pay for SS and medicare.

A minimum 2% of all a persons income would be maditorily put in this account. The only thing that could be invested in would be US companies with over $1 Billion in market cap and have paid dividends for the last 80 quarters (20 years) and would require a portfolio of at least 20 stocks once there was a certain amount of money in the account. This would be take most of the downside risk out of the investments.

The money could be drawn out at any time based on the current life expectency plus 10 years. If the life expectancy is 77 years then the period would be 87 years. A person that was 57 years old could pull 1/360th of the account a month if they wished. 87-57 = 30. 30 years x 12 months = 360.

The money should be able to passed on to anyone elses retirement account tax free even before death. If grandma needs more money you could give her some out of your retirement account.

The current SS liability could be handled by keeping the current tax level and not letting new entrants into the work force, or under 30 for that matter, ever receive any SS benifits. I would also favor a 50% estate tax on anyone that received SS benifits that would paid directly to the SS debt. This would handle means testing. If you were worth a few million would you want to trade half of that wealth for a few thousand in benifits? The debt would amortize eventually. The trick would be getting the politicians to stop the tax once the debt was paid off.

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