SAVING SOCIAL SECURITY SIMPLIFIED

by Dale Coberly

SAVING SOCIAL SECURITY SIMPLIFIED

The Trustees Report came out again this week.

And all the newspeople told us again that we are doomed. Doomed.
"Social Security is running out of money!"

Except it isn't.

And all the Professional Defenders of Social Security rushed out to
tell us, "We can save Social Security: just make the rich pay for it!"

Except they won't.

And they really shouldn't. And we shouldn't want them to. Most
workers understand that Their Social Security is Their money. They
paid for it. They need to know that IT'S NOT WELFARE.

But all the paid experts and politicians, and all the high end
newssources can only think in terms of welfare. So the Bad Cop says
we got to cut it. And the Good Cop says we got to make the rich pay
for it.

But actually all we really need to do is just pay for it ourselves...
as we always have.

It wont cost much. An additional 40 cents per week each year will
pay for the whole "shortfall."

You don't have to take my word for it. The Congressional Budget
Office says the same thing. A CBO Study: Social Security Policy
Options, July 2010
, Option 2 (page 17) says "Increase the Payroll
Tax Rate by 2 Percentage Points Over 20 years... this option would
raise the combined payroll tax rate gradually, by 0.1 percentage
point (0.05 percentage points each for employers and employees) every
year from 2012 to 2031... This option would extend the trust fund
exhaustion date to 2083."




Please note that while the tax would be increasing at one tenth of
one percent per year... combined... wages would be increasing over
one full percent per year. So in today's terms the tax for the
employee would increase by 40 cents per week (and another 40 cents
for the employer), while wages are going up eight dollars per week
each year.

CBO Option 3 would Increase the Payroll Tax Rate by 3 Percentage
Points Over 60 years. This would be a twenty cents per week increase
in the tax each year for the employee and the employer.

With both of these Options it is likely that a similar increase would
need to be enacted at the end of the twenty, or sixty, year period.
This is unlikely to be a problem after people have seen that a
gradual increase is not a "burden." In fact it is unlikely they will
even notice it. Nor will the increases continue forever. The
Trustees Projection is that the need for increases will flatten and
fall to essentially zero after life expectancies stabilize between
2050 and 2070 or so.

Remember it is not a tax going into a government black hole. It is
You saving your own money, protected by "pay as you go with wage
indexing," so that if all else fails you can retire when you need
to. You get your money back with interest in an annuity that will
last the rest of your life. No matter what.

Now here is the hard part for you.

You need to think about this and make sure you understand it. Then I
am going to ask you to sign a petition. Yes, I hate petitions too.
But it's the only way I can think of to spread the word to the people
that they can save their own Social Security for pennies per week.
And not have to turn it into welfare by "raising the cap," or make
it worthless as retirement insurance by cutting benefits, means
testing, or raising the retirement age.

The petition calls for enactment of CBO Option 2 or 3. It is not so
important exactly which of these is enacted, or some variation. What
is important is that people learn how cheap it would be for them to
save their own Social Security. They won't learn it from the media,
the politicians, or the experts.

Please visit http://signon.org/sign/fix-social-security-with?
source=s.em.cp&r_by=4120788 and sign the petition. Then, and I know
this is an imposition, ask your friends to read this and talk about
it, and sign the petition.

Thanks!

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