Target: Low Information Voters

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by

Chris Johnson
in ,

Senator Warren is using misleading language to make her base angry at the rich. Never mind that she has become wealth from being a Senator.

Social Security is supposed to be “forced” savings. The government decided that we could not be trusted with our own retirement funds.

Instead, they took money from us, during our earning years, put it in a big pot, where it would “earn” money over our lifetime of labor.

Of course, that turned out to be a lie. The investment the social security fund made was in US Government Bonds. That is, the government “borrowed” the money, promising to pay it back with interest.

To pay it back, they need to tax The People more. So the piggy bank is empty, but we pretend it holds massive assets.

She then picked a DDS. Why? Because a DDS makes more than $176,000/year. Better stated, he has more than $176k taxable income.

Why is that number important? That is the social security tax cap.

Social Security was set up to take care of the “little” people. The wealthy were left to find for themselves.

We all “know” that the amount we get back from Social Security is based on the amount we paid in. The more we paid, the more we get back.

That means that the person who made $40k per year over the course of their labor should get back something “near” $40k per year. A person who earned an average of $100k? They should get back around $100k per year.

The reality is that you get back less and the money you get back is worth less than when you put it in, and several other things. But that is the general idea.

But, if you are making over $176k/year, the government doesn’t think you should be getting back that amount. Instead, it is up to you to plan your retirement.

What she is saying is that she wants him to pay in much more than he will get out.

One other thing to remember, US taxes are on income. If you have money sitting in the bank, you don’t pay taxes on it. Instead, you pay taxes on the money you take out.

Elon paid over $11 Billion dollars in taxes for 2023. He’ll pay more this year. He has paid more in taxes than any other single human in the history of the world.

And this fork – tongued devil wants him to pay more, so she can spend it.

        

Comments

5 responses to “Target: Low Information Voters”

  1. CBMTTek Avatar
    CBMTTek

    Actually, I have to question the math.
    I am pretty sure I will take significantly more out of the SS system than I put in, unless I die early.

    The SS tax rate on the individual for 2025 is 6.2% (the employer pays an equivalent 6.2%, but I am talking about the individual’s contribution, not the overall contribution.) If I make more than the SS tax limit (let’s pretend I do), my yearly contribution will be:
    $176,000 * 6.2% = $10,912.00

    Also, if my salary exceeds that tax limit, I am going to get the maximum benefits, which depending on salary, years working, etc… will be well over $3,000 a month. That is more than $36,000 a year.

    I put in $10K a year and get $36K a year out. If I worked at those numbers for 40 years, my personal contribution would be $400K. But, if I am retired receiving SS for 20 years, my total return is $720K.

    In fact, I exceed my contributions to the system in slightly over 11 years.

    Now, if you include the employer’s SS contribution, those numbers double. Then again… very few people make the maximum contribution amount every year for the entire career, so my calcs on contributions are overstated.

    Net result. SS will collapse if it were not a ponzi scheme taking today’s contributions to fund today’s payouts.

    Reply
    1. pkoning Avatar
      pkoning

      Ignoring the “employer contribution” means your analysis is incomplete. What you put in is double what you thought. Obviously so from the point of view of the SS administration. But also from the point of view of the employee, because the employer contribution is taxing away money that otherwise would have been available for salary.
      So to use your example, you have $800k in, $720k out. That’s a rotten deal; any annuity would do better because on average you get back more than you pay in due to investment gains. It’s been argued (Neil Smith, for example) that a bank or insurance company that offered you annuities with returns as skimpy as social security would instantly be sued for consumer fraud.

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      Reply
      1. CBMTTek Avatar
        CBMTTek

        Correct across the board.
        However, realize that 20 years in retirement is a short time these days, and not everyone will contribute the max amount. Unless you die early, you are going to take more out of SS than you put in.

        Also, if you want to assume that the employer would make their portion of the SS tax available as wages, why not assume they will encourage 100% teleworking and make the office lease amount available as wages? Or would that just go to profit? (HINT: the latter)

        Finally, I am talking about your personal contribution. Did the amount of your gross pay go down because of this tax? Yes. It is your contribution.

        Second finally:
        You are absolutely correct. SS is the worst possible way to save for retirement.

        Reply
  2. CBMTTek Avatar
    CBMTTek

    As to your other point.
    Yes. Leftist have no problem spending other people’s money and time in order to make themselves look good, and retain their grip on power. (And, make themselves rich as well…)

    Reply
  3. curby Avatar
    curby

    I remember the late 80s-early 90s there were “news” articles about how people were being forced to pay in to social security because they were forced to pay for thier old mans social security…. but nobody was asking where the hell all the money thier old mans paid in went.. my dad back then figured out that if he could of been responsible for his own “retirement” and put all the moneys he paid into social security into his own money market account he would have had alot more than what was in the social security account… remember kids! if you have no choice in paying something its a TAX.

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