Wednesday, June 25, 2008

Last word on politics....

I'm not that political, and my last post was not meant to be political (Although I did mention the policy of Obama, as this is the one who will affect me the most).

My response to the comments...

I hope EVERYONE votes, and knows the candidates and knows what they stand for.

As far as the social security cap:

Obviously those who make less than $102,000 would not care about a cap on social security, it does not affect them.

Who does it affect?

Obviously all those who make $102,000 and over, small business who have to keep paying 6.2% on their higher paid employees and of course the large corporations who will pay out, I imagine, a ton of money.

On a personal level, we would decrease our annual take home income about $4500.00. Not a huge amount, but an amount that we got use to having.

Now, some of you are not feeling sorry for me, saying you make over $102000, you should be doing fine...

Well, yes, we are doing fine, and if they take the cap off we will make adjustments and still be okay.

My problem comes into the fact that the government will now decide how to spend those dollars, because they will no longer be put into "my retirement" account, if I even have one at all.

I give LOTS of our cash away to various charitable organizations....but I enjoy being the one who chooses which charities I send MY money too.

Raising taxes will affect us all. Rest assured all will be affected on that one.

Just my thoughts. Done with politics....

2 comments:

RacerX said...

Social Security was not designed to be a redistribution of wealth (Welfare) sort of system. It was designed as a safety net to those that had no other.

The reason there is a cut-off is that after a certain amount paid in (by you and your employer evenly) you are esentially full. Meaning you cannot reap a benefit equal to the dollars paid in.

This cap removal basically turn Social Security into another Welfare. Not saying it isn't needed, but it wasn't the intent of the program.

Social Security is insolvant due to government not raising the age for entry in line with life expectancy issues. SS was never intended to pay someone 20 years, more like 3-5.

Sharon said...

RacerX!!!!!!!
YEAH!! How are you??? I've missed you!

Actually, from what I understand social security would be fully funded if the gov't hadn't borrowed from it. We are preparing for the worst, by not counting on it for our retirement, however, if they lift the cap, we are for sure giving to charity...but not on our terms.