Guarantee Retirees Social Security & Reform It!
*Before any Changes are made to Social Security, We must 1st return all Social Security monies back into a Trust* which can't be accessed by any CONGRESS or any Government Department or Agency other than to pay benefits to those who are eligible for Social Security, which is being done presently. Thanks to the Johnson administration and his Great Society, Social Security is going broke now. No more funding the general fund with retirement monies! I know that unless those in DC will pass legislation once again Locking Up Social Security Monies as a Trust none of the following solutions will work, as they'll continue raping the Benefits Monies for Social Security for every government program they can think of. Keep this in mind when reading my thoughts on the solutions, first the program must be put in a Permanent Lock Box Never to be Opened or Used for any other purpose than a Retiree or Disability. As of 2012 the Federal Government had taken over 2.9 Trillion Dollars, ending 2014 and growing, that's right Trillion out of Social Security for the General Fund , time they pay it back and then *Lock* it up in a *Trust* for no other use than Social Security Retirement and Remove all Social Security Benefits from being taxed as income. *Only those who've paid in are entitled for benefits to include their spouses, this will include any who entered Legally and stayed Legally, not any who entered illegally will qualify.
By 2033, the fund is expected to be exhausted, thereafter payroll taxes are projected to only cover approximately 75% of current program obligations. When the program runs a surplus, there will be excess funding available for the Social Security Administration that year. The excess funds are diverted to one of the trust funds. The money in the trust fund is used by the treasury in the form of special treasury bonds. The treasury bonds provide interest on the money in the trust funds, and if the program sees a deficit, the excess funds from previous years plus any interest earned is used to pay beneficiaries. Presently Trust funds do not represent a legal obligation to Social Security program recipients, and Congress could cut or raise taxes on such benefits if it chooses, and are considered a "intra-governmental" debt, a component of the "public" or "national" debt.
The Medicare Plan must be changed as well so that they can negotiate pricing of all Drugs to get the best costs possible to stop over paying as is the case at present, most certainly and once again set up by the Lobbyists getting those who are suppose to Represent us, not to allow for any negotiating of Drugs prescribed and thereby costing both the plan more but also those who use it, this is bad policy and once again wasting Social Security Dollars.
Is Social Security's Financing Problem Real?
Unfortunately, suggestions that Social Security does not face a financing problem are not based in fact. Already, the costs of benefits are well in excess of revenue from payroll taxes. Social Security’s cash-flow deficit will add $75 billion to the deficit in 2014, $1.0 trillion over the next decade, and $3.8 trillion in the decade following. As we've explained, the program's past surpluses do nothing to change its very real current cash deficits. Regardless of whether past surpluses were saved in an economic sense or not, the federal government will have to borrow more to make up for the Social Security system’s cash flow deficit.
Social Security is also in trouble in its own right. The program faces a 75-year shortfall of 2.7 percent of payroll, with annual shortfalls reaching 3.9 percent in 25 years and 4.8 percent in 75 years. According to official estimates, the programs trust fund will run out of money either in 2031 or 2033. Although these estimates are subject to some uncertainty, the CBO is 95 percent certain the trust fund will run out within a quarter century. At that point, all beneficiaries will face an immediate 23 percent across-the-board benefit cut regardless of age, income or status. There's no question that this abrupt benefit reduction needs to be avoided, but doing so will require tough choices. As we’ve explained before, the longer we wait to act, the tougher those choices will be. The actions of those who are downplaying the magnitude of the problem and the need for action to address the shortfalls now will actually lead to deeper cuts in benefits for all beneficiaries or greater increases in payroll taxes for all workers than would otherwise be the case.
I believe we must change the retirement age from 62 for partial to 65 and leave 67 for full benefits, and start this by January of 2018 for all and do this over a 9 year period making a change of 4 Months annually complete transition by January of 2027, the one difference will be once 65 and receiving partial you'd also receive the benefit of Medicare, which at present isn't included with partial Social Security at 62 . This will reduce the number of people who qualify, resulting in less out-flow of Social Security Funds. Social Security is in trouble because we have voted for representatives who have taken money from the Social Security trust fund to pay for entitlements such as the war on poverty. We must not fall into the Political Trap of Raising the taxes on other Americans who happen to earn more than is now taxed, as this is only a band aid on a broken system put forth by Politicians either without the Character, Courage or Ideas needed to FIX the problem rather than just kicking the can down the road for Our Children and Grand children. In giving those in DC even more Social Security Funds by raising the taxes on the American Workers is dangerous, as there's no guarantee the monies would be used to pay benefits to the Retired, as at present these Funds are used for the General Budget. This to me is like giving a drunk another bottle while believing they won't drink any of the liquor in it, think very carefully as to whether you support higher taxes to solve a short fall in cash and leaving the system in the Hands of those in DC not to spend it on programs outside of Social Security as they do at present. If we can once again Lock up the Monies paid in and then after a period of 5 years see what the balance sheet is and then determine using the math if the ceiling needs to be raised or not. Do you truly trust those in DC who've managed to increase Americas' Debt by Trillions of Dollars to manage our Retirement Funds, take a look at the Debt before answering the question and ask yourself if you'd give them your check book or credit card, I know I wouldn't. Check the Link on National Debt
We need a new system for those under 45, for if we do nothing that generation will receive nothing in the future as most experts have told us.
We must totally privatize Social Security requiring the federal government to repay all loans to the system, and continue – through the last person who qualifies for it – to fund it through both the current system. This would guarantee its solvency until it's dissolved at the end of the life of the last recipient. Then all monies still in the system go into the retirement funds of those working on a paid in basis.
I also want to set up a private system that would require everyone below the age of 45 to begin to pay into a private account, such as a ROTH IRA, with their employers’ matching contributions – as with the Social Security System – and allowing no withdrawals from it except for retirement, it will be there for all Americans and their retirement funds will never be shouldered by others as a result of poor planning or bad management. This plan will also keep the government out of our lives, and take away the control they now have over seniors with a constant threat of lack of funds for Social Security, because of the nation’s debt or lack of a budget. This plan will give future generations the freedom our seniors have never experienced. This system will also allow your benefits to pass onto your spouse upon your death and your heirs as well, unlike the system we now have which enslaves us to the Federal Government and can't be left to your heirs.
The retirement age of the younger generation will depend on whether they decide to put more into the system than the minimum requirement. Those who would chose to put in more than required would then reap either a larger benefit at the end or earlier retirement, which would allow for more jobs to those still coming up in future generations. However the main goal is to stop the federal government from controlling our lives, through the Social Security system as we all know it.
Privatizing is the best way out and it’s Constitutional
It may be a shock to many, however it's time we as Americans require a real solution to the problem that faces all of us as well as our children and grandchildren. I don’t believe we have any leaders willing to come up with real solutions. Myself having paid into Social Security from 1962, the system must be fixed so our children, grandchildren, great-grandchildren, nieces, nephews etc. don’t have to depend on a government benefit for their future– which has proven itself ineffectual.
Here's one solution for those yet to be born: When a child is born, give the child a birth certificate, an electronic medical record, and a health savings account supplement with a Major Medical Ins. Policy, plus a Roth for Retirement to which money can be contributed—pretax—from the time you’re born ’til the time you die. When you die, you can pass it on to your family members, and there’s nobody talking about death panels. We can make contributions for people who are indigent, instead of sending all this money to some bureaucracy let’s put it in their HSA, so they have some control over their own health care.
If any of you have any ideas you believe will work, don’t hesitate to share it with me or my staff. Please remember we’re talking about a fix with total control and interest that is compounding over the years. Please just do the math. Even at 3% we come out both Ahead and FREE.
In Closing I believe Election Cycles are Critical for Our Nation & State as to whether we sink deeper into a Socialistic Nation or Restore Ourselves to a True Republic form of Government. The choices are clear, never vote for anyone who votes against or compromises the US Constitution and Our Freedoms and believe that’s actually what most of you are hoping for and the Elite Power Brokers are afraid of.
God Bless You All; Clair Van Steenwyk
Originally posted by Clair on 10/1/2011 Updated 7/17/2015