Social Security Debacle
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by Richard Hall

Did you know that:

when Social Security was created in 1937, the cost (called the "payroll tax") was a total of 2% of the first $3500 of income, with benefits non-taxable?
today the payroll tax is 15.3% of the first $65,400 of income, with up to 85% of benefits subject to the income tax?
fully 71% of American workers pay more in payroll taxes than they do in income taxes?
there is no such thing as the "Social Security Trust Fund"?  That's right, it is nothing more than a "pay-as-you-go" system, meaning that current employees are paying for current retirees.
in 1937, the first year of Social Security, there were 42 employees per retiree; in 1965 there were 5 employees per retiree; at present there are 3 employees per retiree; and, by about 2030 when the baby boomers are retired, the ratio will be 2 to 1?  That simply will not fly!
the Social Security system will be producing an annual deficit situation long before 2030?  The current estimate is by 2010-2012.  By 2030 the deficit will have reached unbearable and unthinkable proportions on the scale of many trillions of dollars!
this preposterous situation was created solely by your U.S. Congressmen who are solely interested in achieving everlasting political life at taxpayer expense?
if any private company ever devised such a system, the management would be jailed?
many current legislators, including Bill Clinton and Ted Kennedy, have the temerity to suggest solutions that involve the "adjustment" or "reform" of a system with 60 years of built-in flaws?
the only answer is to dismantle Social Security?  Don't mend it, end it!  There is nothing worth saving.  It is a failed concept, infected by years of tinkering and meddling and jiggering.  It should be replaced by a system of private accounts similar to 401(k) plans.


This page was last updated 07/02/00 01:50 PM