@Wild2000:
@Yanny:
The Average American pays about 15% of their income to Social Security per year.
Incorrect. The average American only pays 7.5%. Since most Americans are employees of a company, the employer picks up the other 7.5%.
@Yanny:
If the Average American works for 40 years, they put a lot of money into Social Security. However, the amount of money they get back is an incredible low number. Someone like 1/30th of what you payed.
So, would you rather put away your own money or let the Government do it and waste 29/30 of the money?
Social Security is a failing system. The longer it stays around, the harder it will be to eliminate.
I agree something needs to be done to the current system. However, scrapping it is not the correct answer. Also, I am not sure if you only receive 1/30th back of what you pay in. Numbers seem off.
@Yanny:
Wild, explain to me why A) Social Security should stay how it is and B) Why the rich should pay a larger percentage of their money to the Government than everyone else.
As I stated above, I think the system needs an overhaul. However, getting rid of it is not the answer.
I already answered why the rich should pay a larger percentage. They have much more to lose. Who has more to lose? Bill Gates or you?
Maybe a better way to think about what money is getting taxed is to think about discretionary income. If a flat tax percentage were used, who would have a larger percentage of discretionary income left? The rich would have a larger percentage and the poor would have a much smaller percentage. The flat tax magnifies this difference even more than the current system.
Something to recognize about our current tax structure is that each level of money is taxed in groups. I am not sure what the exact brackets are off hand, but the first $20,000 of income for a lower income tax bracket individual is taxed at the SAME rate as an individual in a higher bracket. It is only the additional income that is taxed at a higher rate.
Yanny, you have still not addressed what would happen to individuals who receive SS relating to disabilities, etc. You also have not addressed how the lower class individuals are going to be able to save for retirement since they are now being taxed at a higher rate. In addition, you have also not stated how new education on investing will be funded now that everyone has to know how to invest. To many, investing is scary, complex, and time consuming. Since the government will no longer paying out SS, it has to somehow prevent people from not saving. People not investing themselves is a huge issue.
First of all, it plainfully obvious to see that a person can make a LOT more money if they used their social security money to invest. Social Security only gives a person a paltry 2% return on their money. Bah, what a waste.
Next, you still haven’t convinced me why a person with more money should pay higher taxes. Look at it this way. If Bill Gates walked into McDonalds to buy a hamburger, would you expect him to pay an enormously higher price for that burger, becuase McDonalds has to be able to give away free burgers to those who can’t afford them? It’s completely unfair. Whereas, if everyone payed the same amount for that hamburger, then the prices are cheaper and those who still can’t afford them don’t get the burger. (Figureatively, of course. :wink:)
For the disabled, that’s a touchy subject. I don’t neccessarily agree with funding the disabled. Of course I’m not referring to the handicapped or the mentally challenged, but rather the rediculous people that are considered disabled. There are fat people that are legally disabled, and a host of other rediculous qualities. I don’t agree with spending my hard earned money to fund their over-eating habits.
For the physically and mentally handicapped, however, I suggest something similar to the welfare system. Only A LOT MORE STRICT. I don’t want to see it abused the way today’s welfare system is battered.
Lastly, I think it’s within everyone’s ability to invest their money. Even putting it in the bank is considered investment. Of course it won’t yield that much in return, but everyone should be able to wisely invest their money. If you’re scared of investing, then don’t do it. I could care less if you didn’t invest. :wink: