Government

Who should care about entitlements?

The political left is adept at positioning the political right as uncaring, mean spirited and only in favor of the wealthy.

On the surface that’s easy to accept … if you are inclined to ignore the financial state we and all of our entitlements are in. Pick one; Social Security, Medicaid, Medicare, government worker benefits and more. They all present nearly incalculable liabilities and are currently underfunded or present an open-ended expense, not to mention a current deficit of half a trillion dollars a year.

They all represent a financial burden being placed on the next generation.

Not only does the left not recognize these issues, it sees the goal as expanding the programs financed by the “wealthy!”

The problem is most definitions of “wealthy” start at $200,000 income or less; we are not talking about the multi-millionaires and billionaires. There are simply not enough of these people to foot the bill for many of the proposed expansions or even the current state. Therefore, the burden falls directly on the middle class; something you don’t hear much about.

Beyond that there is the basic question of where society’s responsibility begins and ends.

If you are opposed to reductions or future management of spending for any of these programs, then much higher taxes must be accepted along with the fraud and abuse common for these entitlements.

The sad truth is that human nature means all too many individuals take advantage of society’s safety nets and few participants or providers care about costs.


Should anyone care? 

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5 replies »

  1. We do care. #1. it is OUR money in SS. not only the FICA taxes but the IRS tax on what SS gets paid out to us. We get taxed to put it in and taxed to take it out. Congress has been using that money for over 50 years and not for us. Lance actually came out in 2016 and got a group together to STOP them for draining it again. Sticky fingers thinking it was their money to spend.
    Now if they Remove the yearly limit on the FICA tax; that will grow the fund. CEOs are done paying on Feb. 1st. We pay all year. The tax is already there so it is not new. It needs to be protected when the money goes in. Now if the remaining $$ was invested wisely after that generation used it since FDR, compounded quarterly, Rates were 10-17% for a decade, and count all those who died before collecting and right after collecting and that money should have returned to the pot. Now it’s been taxed since Clinton and Gore were in office.
    We do care about Medicare and Medicaid. Seniors run out of funds in Nursing homes etc.
    Do YOU WANT THEM TO LIVE IN BOXES ON THE STREETS????? Baby Boomers are now seniors. Handicapped folks; wheel chairs, walkers, paraplegic folks; What do you want them to do??? a friends son has Hodgkin’s Lymphoma and is on Medicaid. If he goes out; he can catch another germ and be back in the hospital and may die. He cannot work. What would you do with him-death panels?

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    • The SS money is invested in US Treasury Bonds which pay the trust interest and is the only reason full benefits can be paid today. Where else would you invest the money where it would be secure? Certainly not in the stock market. Everyone gets a SS benefit in proportion to the taxes they pay and no more. In fact, the formula is designed to give a higher relative benefit to lower income people. What relevance is there to anyone paying their full SS taxes in February or June or September? All their benefits are still only based on the taxable wage. Would you turn SS into welfare?

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    • I am still confused on your sources. Yes it is your money in social security. My employer and myself have paid a total of $310K (check your statements) which I will get all back in 8.9 years. If I live a total of ten years collecting Social Security where do you think or your sources think that extra $40k comes from? If I live 20 or 30 years that money is no longer coming from interest on my money, I am stealing it from current workers.

      My employers and myself have only paid $90k into medicare (check your social security statements) and at today’s going medical insurance rates, that will paid only about 5-7 years worth of medical insurance if I was under age 65. I am not ensure if I could get insurance over 65.

      I never planned on living in a nursing home. First that is not living to me and second there is no way I am going to be a welfare case and take something I did not earn or save for. I do not remember anywhere in the Constitution or the Declaration of Independence stating that America had to provide for everyone’s individual welfare.

      The only time I have seen returns of 17% were leading up to a stock market bubble and it usually resulted in high inflation. I am sure that you remember the 1970’s and the early 1980’s. I do not want that either. I’ll take 5 to 7% returns, slow and steady.

      But I am open to proof of all this stealing of the funds.

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  2. It is human nature to get your fair share. If my taxes are paying for something, I want it too. The opened ended blank checks are killing the US. Everything that the government has backed or guaranteed has caused prices to spin out of control, think mortgages, tuition, healthcare.

    Then there is the “wealthy”. As of 2016 there were 10.8 million millionaires in the US, that is people with net worth greater than $1m. Of those people only 1.5 million had more than $5 million in assets. I have a $1m in savings and my 401Ks so I guess I am a millionaire. This money has to last the rest of my life. At a drawdown rate of 4%, I make $40K a year. So am I a millionaire or a someone who will be earning $40k/yr for the rest of my life? Either way, I will not be taking private jets or throwing $100k parties. I do not consider myself rich just much better off than most heading into retirement. So of the 9.4 million millionaires with less than $5m, how many are just like me? It sounds like they want to tax me until I go from paying taxes to having to give me more entitlements.

    In the meantime, Everyone of us is helping kick the can down the road by re-electing the same criminals to Congress all because “our” representatives get our state or district “our fair share” of the taxes we send to Washington.

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    • What a difference 50 years make, 1967, (1971 for me) close to the time many of us entered the workforce. . Your 1 million dollars today, only has the buying power of $134,500 1967 dollars. you would need $7,438,693.01 to equal what $1,000,000 bought in 1967. To become a millionaire was a lofty goal when we were young, most of us never even came close.
      Our politicians will not be happy until all citizens are dependent on government and no one has anything in savings. In 40 to 50 years almost everyone will be living at the poverty level, because the government will have 80% tax rates for all and make everyone poor. They have run out of other peoples money and are adding almost 1 million to the national debt each and every minute. I do not know if things will ever change, but most of us will be long gone before the politicians try to fix the mess they have created.

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