quote:Originally posted by Sam:quote:Originally posted by elinterventor01:quote:Originally posted by Sam:quote:Originally posted by dolemitejb:quote:You obviously don't draw a paycheck because on each paycheck I got (actually a payslip) was an itemized deduction for Social Security and Medicare.
The government can itemize their theft however they see fit, but it won't fundamentally change what it is. FICA contributions are taxes.
You are right. It is a tax. A tax used to fund an INSURANCE program. Social Insurance. A program to insure you against the loss of income due to death, disability, or old age. It was not meant to be a "retirement program". FDR himself said we can never insure 100% of the people against 100% percent of the hazards and vicissitudes of life.
Your taxes are an insurance premium similar to a car insurance premium. Your car insurance premiums are used to pay the claims of other motorists wrecks. Your FICA premiums are used to pay the claims of other workers who have lost income due to death, disability, or old age.
Insurance companies keep some of their cash as ready reserves and invest the rest in secure investments to produce income. Uncle Sam spent the lot.
Social Security invested their cash in the securest investment of all, US Treasury Notes. The problem is that US Govt is now a debtor to the Social Security Administration. The questions for the next several years will be "How do we pay that debt?"
Perhaps, unknowingly, you proved my point. However, the securities are not treasury notes. Which means they aren't on the books.