Re: 2012 Elections - Fear is the mind killer. Fear is the little death....
Yes, we are broadly in agreement. The expenditure side must be brought under control.
Technical edit: Social Security works as a giant group annuity. When you translate actuary-speak into English, what that means is that you cannot give each person a separate dedicated account solely with their name on it without greatly increasing the cost...as it operates now, the cessation of benefits to people who die early helps pay for the extension of benefits to people who live a long time.
Now, you can set it up so that each person's benefit is related to how much each person pays in....which is exactly how it operates now. Most people have forgotten that the benefit formula only applies to a capped income, not to total earned income, which is why the Social Security tax applies only to capped earned income, not to total earned income.
Originally posted by Rover
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Technical edit: Social Security works as a giant group annuity. When you translate actuary-speak into English, what that means is that you cannot give each person a separate dedicated account solely with their name on it without greatly increasing the cost...as it operates now, the cessation of benefits to people who die early helps pay for the extension of benefits to people who live a long time.
Now, you can set it up so that each person's benefit is related to how much each person pays in....which is exactly how it operates now. Most people have forgotten that the benefit formula only applies to a capped income, not to total earned income, which is why the Social Security tax applies only to capped earned income, not to total earned income.
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