Save Social security from the WALL STREET Crooks

 

Save Social security from the WALL STREET Crooks

Killing off Social Security (SS) has always been a goal of the Republicans and they tried this in 2001 when they had a majority in the Congress and Bush/Chaney in the White House.

These right-wing nut-jobs now see another opportunity to transfer tens of billions from SS to the Wall Street crooks.  They just agreed to join with the Democrats to find ways to cut the deficit and they are planning on using this committee to push “privatization” of SS.

First, let’s get something straight.  Social Security isn’t an investment.  It is old age insurance that guarantees old people will have enough money when they can no longer work to pay rent and eat.

The difference is MAJOR.  In the SS system when you pay in you get to take out a guaranteed amount when you retire.  With an investment you may lose everything.

Republicans love to compare investments in the stock market with the payments from Social Security – this is apple and airplanes.  There is no comparison. 

The plan is the same old BS Republicans have been selling for decades; allow younger workers to direct a part (proposed is 30% to 50%) of their SS deductions into accounts with Goldman Sachs and other Wall Street firms.  The government would guarantee these accounts so when the SS payee or his broker made risky investments and lost money the taxpayers would reimburse the lost funds.

Republican Rep. Paul Ryan of Wisconsin has a bill to do the above and 100% of the Republicans support for this bill. 

Obama and some of the Democrats are willing to consider this plan.

The Social Security system is and has been a “pay-as-you-go” system where current workers pay the benefits of those that are retired.  The Catch 22 has always been the entitlement that allows the top wages earners to AVOID paying SS taxes on most of their wages.  The current limit on wages is $109,000.  So Bank CEOs that make $50 million per years pay the SS tax on less than 1% ($109,000) of their wages while workers at Wal-Mart pay on 100% of their wages.  You will not hear this story on the Brian Williams news because he makes $8 million per year and likes paying the SS tax on just $109k.

This entitlement for the rich must be eliminated.  Tax all wages for Social Security.

The SS system has been adjusted over time, increasing the retirement age, increasing the actual tax and increasing the wages taxed.  The current system needs another adjustment of all these factors.  All wages need to be taxed.  Allowing the rich and greedy to pay a limited tax is unfair and immoral. 

There are now over 40 million Americans drawing SS benefits and some are very rich.  We need to start means testing SS and those with retirement incomes over $100,000 per year should get no SS payments.  Yes they paid into the system – no they don’t get to take out of the system.

Over 10 million that draw SS have no other income and they average just $1,000 per month.

Republican proposal – cut all SS benefits across the board by 25%, allow workers to redirect 50% of their SS tax to Goldman Sachs and invest in stocks, bonds, derivatives and other investment securities.

Allow Goldman and other Wall Street firms to charge fees for service provided.  Let the free market decide what the fees are and how much they charge.

Over time two things will happen for sure.  The first is many millions of workers believing they can make a lot of money speculating in the market will invest with the Brokers on Wall Street.  Second, most of these workers will lose all or a major part of their retirement.  They will be old and poor and have no money for rent or food.

Some brokers now promise 20 to 30% returns to rich investors and I can see where the factory worker will get calls promising wealth if they just sign the SS money over to Getit, Quick & Run Investment Services.

The return on SS taxes taken out of payroll checks isn’t very good, because it isn’t an investment - it is insurance.  It is an insurance policy that guarantees old people will be able to pay rent and eat in their old age.  It has worked well for this purpose.

We all need to have this insurance policy and we should protect it from the Republicans and the Wall Street crooks.