Commentary for seniors who voted for BO

TWW Commentary

"The current quagmire we face with Social Security came about when the New Deal politicians created a Ponzi scheme Bernard Madoff would be proud of. They created the illusion of an entitlement so people would give their hard-earned money to the government with the promise of a well-deserved payback in old age. But like any good Ponzi scheme the government schemers spent all the money they got and now all that is left is a pile of IOUs called treasury bonds only payable with future workers putting in money so the earlier investors can be paid off to keep the scheme going. Unlike people who never had health insurance, 401K accounts or pensions, many people had them all while working and now with Social Security have a government-subsidized retirement far better than they deserve

The only way we can save Social Security is a means test so only the deserving poor get Social Security. But a means test usually means wasting money on administrative costs. Fortunately, the descendents of the New Deal politicians have shown us the way out of the mess with the recent stimulus package. That package first made it legal to pay bonus money to people at AIG and then the politicians turned around and wanted to tax 100% of the bonus money.

The same solution can save Social Security. People file income tax returns and for little administrative cost income taxes can be used to recoup Social Security payments to people who don't truly deserve or need them. Currently some Social Security money is taxed but the rates are way too low. Wealthy people like retired AIG executives should be required to pay all of their Social Security money back with their income tax return. This 'shared sacrifice' surtax on Social Security payments would have to be progressive so truly needy people pay no taxes but those better off would pay proportionately more back. This Fair Deal approach is about the only way we can save Social Security for people who really need it."

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