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Unfortunately, if the bar is set too high, the money saved won't be very much. We read that only ~3.5% of American families are worth more than 1 Million, so cutting benefits off at 1 Million assets would only save 3.5%.

This is an intersting point Cliff and brings up several problems with how you decide who gets the SS benefits and those that don't. How would the government calculate your net worth? Would it include real estate and pensions?

I will not recieve a pension so my 401k, IRA's and taxable investments will certainly be included into any governmental net asset calculation. Will they include the pensions of military and government personel? Probably not! They will get to continue to double and tripple dip into the treasury!

What about an inheritance of land you receive. Will that be included in the calculations?

I they based the need on assets, then you would have all kinds of asset hiding going on. It would be pretty easy transfer you assets to your kids so you look poor.

The government would have to base the SS payments on your total income from pensions, trusts and investment returns.

I still see lots of ways for the the rich to get around it though. A rich parents could give under the table gifts to supplement their children's income while they remain under the income levels for SS. Once again, the lower class gets what they did not earn, the rich find loop wholes and the middle class gets screwed!

Whether you base limits on wealth or income, it would create a big disinsentive to save money. Why save beyond a certain point when you know that the government will only take away your SS contributions? If the wealth tax limit was 300k, then why save beyond that? People will spend every penny they have over 300k so the max SS checks keep coming.

Everything about it encourages more irresponsibility.

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