kelticwizard wrote:okie wrote: Where did you get the slashing of Social Security money coming in by one third? That is a joke, right?
Alas, this is no joke. Each person gets about 6% of their money deducted from their check for social Security. Bush's plan would allow young people to take 1/3 of that and use it for their own private investments account. So that one third does NOT flow into the fund to pay the Social Securtiy for people who are presently retired or will retire for the next few decades.
You can double the 6.2% deducted from peoples paychecks, because the employer matches it. Self employed pay 12.4% plus the medicare of another almost 3%. If employers did not match, they could pay the employee another 6.2%, so it is costing every employee, whether self employed or not, about 15% for both Social Security and Medicare.
You've forgotten that the money received by current retirees was supposedly paid into a fund, whereby they should be getting paid from. Unfortunately, politicians have robbed that fund blind so that current workers must pay for current retirees. Such schemes if operated by a private company would be deemed embezzlement and fraud and the people would be sitting in prison. Check out the definition of Ponzi scheme.
The 1/3 that you refer to is their money and if invested in their own fund, would probably perform better than the measly interest earned by the funds as they do now. Also, since the money flowing into the SS fund is currently greater than now being extracted for current retirees, the extra money is being borrowed by the government for other frivolous general fund spending.