Government

We spend too much money on the elderly and not enough on children.

Politicians seeking votes constantly pander to seniors like calling for higher social security benefits and various other tax breaks. Seniors vote; kids don’t get to vote. Spending on seniors is nearly 50% of the Federal Budget.

Something is wrong. Perhaps if we invested more in children, future seniors would have less need for government funds.

In any case, we seniors had our chance, we worked and made financial decisions and life choices for forty years or more. We have no right to keep taking more from younger generations and consuming more of America’s wealth, especially when that consumption means more federal debt and interest expenses.

Source: Committee for a Responsible Federal Budget

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10 replies »

  1. this sounds like the erroneous statement of Romney at the dinner where he lumped Senior SS and Medicare into Welfare. WE paid for SS and Medicare; so in fact, if Congress had not sticky fingered our fund since 1965; we’d have enough in there but its OUR MONEY not the government’s. I know there are some collecting who NEVER paid in; including illegals. I know that needs to be shorn up and taking the congressional pension plan and converting that should help it along, and taking off the yearly cap will help more. Since CEOs are done by 2/1.
    So in reality, the government is only paying us back what we paid as insurance for our retirement all our workings lives at FICA taxes. In reality they are NOT spending all that money on Seniors.
    The children never paid FICA taxes for the most part, some may have. they are spending money to return it to us, electronically. We KNOW that in 2016; a group in the House stopped them from doing it again. That’s common knowledge now. That came out in the campaign.

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    • Unfortunately, your information is not correct. You did not pay for your benefits, you funded the benefits of the previous generation and nearly everyone gets back in Benefits far more then they and their employer paid in taxes (typically in about seven years). Did you every wonder how two people can pay the same in taxes, retire at the same time while the one married with a non-working spouse collects 50% more in benefits? NOBODY sticky fingered the funds. The Trust owns $2.8 trillion in Treasury bonds that pay the trust $80 billion plus in interest each year. And, in 2018 the trust must start to cash in those bonds to be able to pay full benefits. Illegals do not collect benefits, but they do pay billions in SS taxes using fake ID cards so in fact, they actually help the fund. So what if a CEO stops paying SS taxes in a few months. Their benefit is limited to the taxable wage base like everyone else plus lower income people get a higher benefit because the SS calculation is designed to pay more to lower income people. As far as Medicare goes any payroll taxes paid only went to Part A. There is no trust for Parts B and D they are funded by premiums and general tax revenue.

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  2. .

    This is now more than age demographics. It is also racial demographics because in many parts of the nation most of the elderly are white and most of the children are non-white [and immigrants.] This is now true in many parts of Europe too. For example, in Germany, many schools are mostly immigrants or children of immigrants [like Turks.]
    .

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  3. Q, while driving around town this month, check your rear view mirror. AARP flaks May try to pull you over for a tutoring session.

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  4. Don;t like your comments! Remember, when we as seniora started to work we may have gotten $.75 to $1.00 an hour in our teenage years, not $7.50 to $15.00 as of today. Our wages back then may have been the going rate of the economy but also our retirements were based on our salaries as well. Today people make a lot more and therefore their retirements are higher from whatever agency/ company they work. True, costs were less then, however in today’s economy our pensions worked for that economy, not today’s, that is why so many seniors aren’t making it. This is also true of what are Social Security benefits are, what we earned back then is how it is based, not what it is today. Yes, the children of today need help, however, the States need to provide that for them as designated today. These facts should be taken into consideration of seniors as well. There were no opportunities in our time to make more, there was a set percentage one received every year, if any and people did not go from job to job as of today in order to increase their income, we all stayed in our jobs in order to receive any retirement. Back then it was required you stay with your company 10 years to even be considered for retirement, not like today where everyone can work at a company 3-5 years or less and be given shares from the companies or the company matches your amount put into retirement. There wasn’t any of that available during the time we worked. Those facts are never brought out and any savings most of us have saved have had to be used for the things we can no longer do, i.e. service repairs, yards, and costs that have risen so much that it is difficult for any of us to make it with the small retirements based on the economy then and/or the amount awarded from Social Security based on our incomes when we retired. I have no problem with helping the children, however the States are required to provide the correct programs they need, and that is not the Federal government’s area therefore it is the State voter’s that need to take that into consideration and require the State’s to provide better programs for our children of today. Incidentally, back when we were children, there weren’t any programs at all designating help for children, we all did what we could to help them!

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    • But where do the states get their money? From taxpayers, including seniors. Pension were nearly always funded 100% by the employer, not so today hardly anyone has a pension except Gov workers. That should have made it easier for seniors to build up extra funds for retirement. The growing burden on younger people to fund their own pensions, to fund current seniors Social Security will make it much harder on them than the current seniors.

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      • RD – We get the money for kids and seniors by cutting out waste in all government programs. State and Federal budgets waste millions every day. But, no one seems to care. There are eight different food programs run by the federal government, how much could be saved if there was just one. Until the government looks at everything that they do and cut where it needs to, nothing will change.

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    • Is inflation new? Even I knew in high school about the raising cost of living. I got a hard lesson between 1979 & 2004. I never expected that I was going to live on what I made in 1978 in 2018.
      According to US Labor Dept. inflation from 1978 to 2018 was 285.9%. But if you buy a new pickup truck the cost is 727% more so I would not count on inflation on being so “low”. I am priced out of the new truck market now in retirement.

      My goal was to have $1 million in investments in addition to my pension and medical. I figured that together they are worth about $2.5 million. It is true new workers have to job hop to get more money and my co-workers who got stuck on the new plan most of their matching funds do not kick in until their fifties. My concern is how are they going to save 3-4 times the $2.5 million for 40 years from now without the power of compounding?

      I avoided paying taxes on my 401K contributions in order to save more money. How long before the new generation has that advantage taken away to pay for my Social Security and my Medicare?

      I also don’t believe in a welfare or socialist state. People need to take care of themselves or the government will control every part of your life. People need to take responsibility for themselves.

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  5. “We spend too much money on the elderly and not enough on children” It looks that way if you look at Federal spending only. Don’t forget that social security and Medicare are dedicated funds with their own separate funding sources, not the general fund. Most of the money spent on children is State funded (think schools and education)

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    • Parts A and D of Medicare come from general funds, no dedicated Trust. Those who pay income taxes on 85% of SS Benefits also help fund Medicare with those taxes. Interest on the trust comes from general revenue. States also spend on seniors. Aside from their local programs, most don’t tax SS Benefits, some don’t fully tax all pensions others have Rx subsidy programs and others have breaks for property taxes. In NJ some seniors can have their property taxes frozen and never pay higher taxes. All lost revenue while many schools struggle. My point is that when you are say 22, you know someday you are likely to stop work, you know you will get a base income from Social Security and you know the rest of your income must come from you and you SHOULD know inflation in retirement will be an issue. Seniors, including myself, have no right to have more and more taken from the younger generations to support people who had forty-years or more to plan. Yes, there are some truly poor who cannot do anything more than rely on SS, but they are the great minority. The majority simply live their lives oblivious to the future.

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