* Dan Minette ([EMAIL PROTECTED]) wrote: > But, my generation supported higher taxes on itself to partially pay > for our own generation. Right now, our taxes have put 3.3 trillion > into the trust fund for our own retirement. It should near 5 trillion > by 2010 (or about 40% of GDP). The change in taxes in the early '80s > were the cause of that (the reserve was only .2 trillion in '80.
Partially pay for itself? That means they did NOT pay for themselves (I wonder how the IRS would feel if I told them, "well, I partially paid my taxes"). They paid in 4-5% of GDP year, and will get out a bit above 6% of GDP per year. > >And the politicians will give it to them, since spending now and > >leaving the bill for the next elected official is good politics. > > That didn't happen when I was close to your age. Yes, it did. It has been happening continuously since SS started. And not just in SS. You posted the national debt figures yesterday. > If we wait 30 years, it will be a crisis. A small nudge now should > be enough. For the same lifetime benefits as a % of one year's > GDP from social security, we're only talking about, on average, > reducing the increase in total retirement benefits from 1.5%/year to > 1.25%/year. Whichever combination of techniques is used, that's about > what we need. Indeed, that's not even including the savings from the > transition period...that's just sustainable in '45....and it doesn't > include the added savings that could be found by continuing on that > path later. So, if we make that change, we should be able to cut SS > taxes by '45. Except that, as has happened each generation since SS began, people will try to raise benefits for themselves and put the bill onto the next generation. The pay as you go idea is fundamentally broken given human nature and politics. People need to account and be accountable for their own saving and spending. Earmark the money to each person so that there is visibility and accountability. That doesn't mean taking away forced savings, safety, or progressivity -- they can be maintained with private accounts. -- Erik Reuter http://www.erikreuter.net/ _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
