Social Security officially in the red...

[Casper]

http://money.cnn.com/2010/08/05/news/economy/social_security_trustees_report/index.htm?hpt=T2

[SAMBUSA]

Moar fear.

On a side note, I'm really glad I haven't paid in to SSI for the last 10 years

[Steve Butters]

^ how do you avoid that? fucking tax ninja and your black market sheepstitution

[Fonzie]

Check out I.O.U.S.A.... It's gonna get even worse once the social security surplus is no longer masking what our real deficit is...

http://www.imdb.com/title/tt0963807/

Edited August 5, 2010 by Fonzie

[serpentracer]

why do rich people that don't need social security still cash their checks?

[Steve Butters]

i wish they would just cancel social security - asap

i already know it wont be there when im ready to claim it, and im tired of paying into it outta my hard earned money, knowing i will never see a dime of it back

[jblosser]

why do rich people that don't need social security still cash their checks?

Define "rich" and "need".

Wait, don't bother, that was rhetorical.

"The rich" paid into the system with a promise that they would get something back. Why wouldn't they cash the check?

Also, if they're "rich", they probably have other income, which, assuming their total income is over a certain amount, makes the proceeds from the check they're cashing taxable, thus continuing the circle.

Earn money, pay tax. Get money back (social security check) from taxes paid , pay tax on it again.

Inherit money from someone (deceased parent, spouse). That money was taxed when earned. Now you get to pay tax on it again.

Great system.

[Disclaimer]

I love SS discussions.

Now, who here is on Social Security so we can get their opinion?

[cg2112]

Inherit money from someone (deceased parent, spouse). That money was taxed when earned. Now you get to pay tax on it again.

Well, sort of.

Look at it in really simple terms: A person earns money, and they pay income tax. If that person has an employee, he pays the employee with that money, and that employee pays income tax.

We don't necessarily tax money, exactly, we tax income when it is earned, by employment, interest, inheritance, gifted, etc. We don't really tax money, otherwise all taxes would be multiple taxes (I mean, my income was already taxed, why should it be taxed when I buy something, etc, etc).

That said, I'm opposed to inheritance taxes, I don't think that people save their entire lives to have a large portion of their money go to the state.

[SAMBUSA]

^ how do you avoid that? fucking tax ninja and your black market sheepstitution

Railroaders dont pay in to it. We have our own retirement pension

[SAMBUSA]

I love SS discussions.

Now, who here is on Social Security so we can get their opinion?

My pop in law is getting SS benefits, but I'll pass on posting what he says

[jblosser]

Well, sort of.

Look at it in really simple terms: A person earns money, and they pay income tax. If that person has an employee, he pays the employee with that money, and that employee pays income tax.

We don't necessarily tax money, exactly, we tax income when it is earned, by employment, interest, inheritance, gifted, etc. We don't really tax money, otherwise all taxes would be multiple taxes (I mean, my income was already taxed, why should it be taxed when I buy something, etc, etc)...

I was looking at it as simply as I could. Change the words (income instead of money), but the upshot is the same:

- Do something to earn an income (money), let's say $100.

- Pay $6.20 in FICA (Social Security) tax (we'll skip all of the other taxes for simplicity's sake).

- Put the $93.80 in a shoe box, where it's doing nothing.

- Die.

- Some relative inherits that $93.80, they pay tax on it.

* yes, I realize that $93.80 is probably under the taxable limit; again this was as a (very) simplified example.

** I shouldn't have included spouse in my initial comment; assets normally pass untaxed to a surviving spouse.

Assuming mom/dad did really well and/or were thrifty, leave you $2M + and you're looking at the Government confiscating 50% or more of that inheritance.

I still don't think it's right.

[oldschoolsdime92]

I'm in the same boat as sambusa, I haven't paid into S.S in 5 years

[shittygsxr]

Moar fear.

On a side note, I'm really glad I haven't paid in to SSI for the last 10 years

Amen brother 6 years here

[Steve Butters]

speaking of taxes...it pissed me off we have to pay tax on used vehicles....tax was paid when it was new, shouldnt have to be paid again!

[DGTL GRL]

i wish they would just cancel social security - asap

i already know it wont be there when im ready to claim it, and im tired of paying into it outta my hard earned money, knowing i will never see a dime of it back

agreed!!!!!!!!!

[Cheech]

speaking of taxes...it pissed me off we have to pay tax on used vehicles....tax was paid when it was new, shouldnt have to be paid again!

That makes no sense at all. You're not taxing the car, you're taxing the transaction. Now that being said, the fact that they tax a private, non business-to-consumer party transaction just because it's got an engine just makes me all stabby.

Define "rich" and "need".

Wait, don't bother, that was rhetorical.

"The rich" paid into the system with a promise that they would get something back. Why wouldn't they cash the check?

Also, if they're "rich", they probably have other income, which, assuming their total income is over a certain amount, makes the proceeds from the check they're cashing taxable, thus continuing the circle.

Earn money, pay tax. Get money back (social security check) from taxes paid , pay tax on it again.

Inherit money from someone (deceased parent, spouse). That money was taxed when earned. Now you get to pay tax on it again.

Great system.

Basically what I came here to say. If I've been making a decent income, why in the hell would I reject money from a government system that I've been paying into for 40+ years? Some noble sense that "I have too much money?" Screw that, I've had it forcibly taken out of my pay for almost half a century, you best believe I'm going to cash that check.

[obesityrules]

I was looking at it as simply as I could. Change the words (income instead of money), but the upshot is the same:

- Do something to earn an income (money), let's say $100.

- Pay $6.20 in FICA (Social Security) tax (we'll skip all of the other taxes for simplicity's sake).

- Put the $93.80 in a shoe box, where it's doing nothing.

- Die.

- Some relative inherits that $93.80, they pay tax on it.

* yes, I realize that $93.80 is probably under the taxable limit; again this was as a (very) simplified example.

** I shouldn't have included spouse in my initial comment; assets normally pass untaxed to a surviving spouse.

Assuming mom/dad did really well and/or were thrifty, leave you $2M + and you're looking at the Government confiscating 50% or more of that inheritance.

I still don't think it's right.

should have gifted them the 93.80 before they died just gotta learn the loopholes

[DAC]

Amen brother 6 years here

Same for teachers.