RDQ There is so much to rant about these days. Let’s go for the people who don’t believe facts-perhaps about Social Security
I feel like I am in ranter's heaven. There is so much to rant about, the choices are confusing. I’ll skip the political scene.
Still there are dangerous drivers who ignore the rules -and common sense- of the road. There are those who insist on parking next to your car - sometimes making it nearly impossible to open your door- when there are 100 empty spaces a few feet away. Then there are the shopping cart inconsiderates who leave their cart in the parking lot, even handicapped spaces, because they are too lazy to put the carts where they belong.
While high on my list, they do not compare with the folks who you present with facts on a subject and their response is “that’s your opinion.” No it’s not my opinion, it is a fact.
Social Security is my favorite subject when it comes to ignorance and my opinion. The other day I was in a Threads “discussion” where I explained the income taxes paid on SS benefits go into the SS and Medicare trusts- $50.7 billion to Social Security alone.
The other guy insisted SS benefits should be income tax free because his FICA taxes over the years had paid for HIS benefits. My reply - that was not true - was met with “that’s your opinion.”
A women said SS was a scam because the government hadn’t contributed its share - let that sink in.
Another insisted the problem is that they didn’t factor in the people who die before collecting anything. Yup, the actuaries aren’t aware of mortality risks, that must be the problem. Ye gads.
Did you know FDR didn’t intend for Social Security to last beyond the Great Depression? Some people believe that. Probably the same folks who believe income taxes are illegal and voluntary.
Others don’t believe that nearly all beneficiaries collect in benefits more than the total they paid in FICA in five to six years of starting to collect benefits. I did the calculation using my earnings record and the benefit Connie and I collect each month. We’ve been collecting since 2008 and our payments long ago exceeded both my and my employers taxes paid. Connie receives a spousal benefit. What about the worker receiving a benefit along with his wife and ex-wife on his earnings record?
If beneficiaries paid for their benefits, how is it payments continue for life, exceeding all their working year taxes paid. Don’t bother using logic in an explanation, it’s only your opinion. SS is far more than individual retirement benefits too.
My all time favorite anti-fact position is that all would be well if only Congress had not “stolen” the SS money and spent it on other things. It wouldn't and it didn’t.
SS funding has been basically the same since the beginning. Excess revenue was invested in special interest paying treasury bonds. Having sold those bonds, government uses the money as general revenue just as if we or Japan purchased a treasury bond. Of course it’s intra-government accounting, but that doesn’t change the facts. The last 2024 Trustee report shows that interest income was $66.9 billion. In 2020 it was $80.8 billion.
These days there is no excess revenue, interest income is declining and bonds are being redeemed to pay benefits. Hence, when they are all redeemed and interest income is zero, incoming FICA taxes and income taxes paid will only pay 80-83% of earned benefits. Make benefit payments tax-free and the situation is worse - fact - not my opinion 😎
There is one thing about Social Security where I admit my opinion surpasses facts - sort of - that’s the folks who insist they would be better off financially if they had the taxes to invested on their own. In a perfect life for 40 years that may be possible. If you escaped every vicissitude of life along they way and were disciplined that may be possible. In the real world, nope, it won’t happen. That’s my opinion of course.
Still there are dangerous drivers who ignore the rules -and common sense- of the road. There are those who insist on parking next to your car - sometimes making it nearly impossible to open your door- when there are 100 empty spaces a few feet away. Then there are the shopping cart inconsiderates who leave their cart in the parking lot, even handicapped spaces, because they are too lazy to put the carts where they belong.
While high on my list, they do not compare with the folks who you present with facts on a subject and their response is “that’s your opinion.” No it’s not my opinion, it is a fact.
Social Security is my favorite subject when it comes to ignorance and my opinion. The other day I was in a Threads “discussion” where I explained the income taxes paid on SS benefits go into the SS and Medicare trusts- $50.7 billion to Social Security alone.
The other guy insisted SS benefits should be income tax free because his FICA taxes over the years had paid for HIS benefits. My reply - that was not true - was met with “that’s your opinion.”
A women said SS was a scam because the government hadn’t contributed its share - let that sink in.
Another insisted the problem is that they didn’t factor in the people who die before collecting anything. Yup, the actuaries aren’t aware of mortality risks, that must be the problem. Ye gads.
Did you know FDR didn’t intend for Social Security to last beyond the Great Depression? Some people believe that. Probably the same folks who believe income taxes are illegal and voluntary.
Others don’t believe that nearly all beneficiaries collect in benefits more than the total they paid in FICA in five to six years of starting to collect benefits. I did the calculation using my earnings record and the benefit Connie and I collect each month. We’ve been collecting since 2008 and our payments long ago exceeded both my and my employers taxes paid. Connie receives a spousal benefit. What about the worker receiving a benefit along with his wife and ex-wife on his earnings record?
If beneficiaries paid for their benefits, how is it payments continue for life, exceeding all their working year taxes paid. Don’t bother using logic in an explanation, it’s only your opinion. SS is far more than individual retirement benefits too.
My all time favorite anti-fact position is that all would be well if only Congress had not “stolen” the SS money and spent it on other things. It wouldn't and it didn’t.
SS funding has been basically the same since the beginning. Excess revenue was invested in special interest paying treasury bonds. Having sold those bonds, government uses the money as general revenue just as if we or Japan purchased a treasury bond. Of course it’s intra-government accounting, but that doesn’t change the facts. The last 2024 Trustee report shows that interest income was $66.9 billion. In 2020 it was $80.8 billion.
These days there is no excess revenue, interest income is declining and bonds are being redeemed to pay benefits. Hence, when they are all redeemed and interest income is zero, incoming FICA taxes and income taxes paid will only pay 80-83% of earned benefits. Make benefit payments tax-free and the situation is worse - fact - not my opinion 😎
There is one thing about Social Security where I admit my opinion surpasses facts - sort of - that’s the folks who insist they would be better off financially if they had the taxes to invested on their own. In a perfect life for 40 years that may be possible. If you escaped every vicissitude of life along they way and were disciplined that may be possible. In the real world, nope, it won’t happen. That’s my opinion of course.
The post RDQ There is so much to rant about these days. Let’s go for the people who don’t believe facts-perhaps about Social Security appeared first on HumbleDollar.
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