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From: jrl@harpo.UUCP (jrl)
Newsgroups: net.taxes
Subject: Re: SS deduction
Message-ID: <2695@harpo.UUCP>
Date: Tue, 23-Apr-85 14:10:51 EST
Article-I.D.: harpo.2695
Posted: Tue Apr 23 14:10:51 1985
Date-Received: Wed, 24-Apr-85 04:10:47 EST
References: <5762@duke.UUCP> <121@pyuxh.UUCP> <632@ssc-vax.UUCP>, <434@hou5h.UUCP>
Organization: AT&T Bell Laboratories, Whippany
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     It seems that the discussion of SS taxes being deductible as is state
and local taxes is valid. It seems that the problem is that promises were
made in prior years and there has to be some way of keeping them. Perhaps
it was a simpler time when people thought that nothing could go wrong with
the economy and they thought they might be able to make it without govt.
assistance. The post-war era was one of great growth and most people
thought everything would be fine in 30 or 40 years. However a blind faith
in the govt. and the economy did not make a comfortable retirement possible
for a great many people. Today's worker knows better. He trusts no one,
and Uncle Sam is at the top of the list.

     There can be many solutions to the growing problem of retirement
income. One is to continue to pay yeaterdays workers their share that
they have earned, and to stop the system with all new workers entering
the system. These workers would be expected to provide for their own
fund by an IRA or other finincial instrument. The money needed for the
current crop of retirees can be met by cutting the defense budget. (Just
think of all the money being spent on weapons and systems that everyone
prays that won't ever be used)
     Another solution is to allow the parents of a new deduction (child)
to deduct say 5K for the childs retitement fund. A type of trust fund
could be set up like an IRA in the childs name and will accumulate
interest until the time for retirement, say 55 years. 5K in a money
market fund should grow quite large in 55 years (bar any economic distress).
Of course there are some who could not afford even 1K for such a thing, those
people should not have any children anyway, since they are in dire straights.
     Still another solution would to be to raise the corporate tax rate
to a fair level, above the general tax rate. Corporations should be glad
to do business in a captialist market, and judging from the 'Public be damned
attitude of some of them they should provide something for their tools beside
some small pension and a gold watch.

      It sems to come down to the social obligation of the government to
the people. Political inducments that were offered to the masses are
turning out to be a real expensive social experiment. Medicade, medicare,
AFDC, WICS, Social Security are costing you and me a lot of money now, and
the cost will only go up in the future if these programs are'nt controlled.
It can be said that the Medicare system is directly related to the extreme
cost (in terms of GNP) of health care. People should take some more thought
and responsibility in their own lives. For example a welfare mother who can't
survive in a decent manner should not get pregnant, for her sake, the childs,
and society.

      Today's retiree has it much better than we might in 30 years. They
were able to buy homes they can sell after 55 and keep the profits, some
of them even owned a vacation home. They had large families, because they
could afford it. Their personal and social security tax rate was much lower
then and they had more bucks to play around with. Contrast that with a worker
who is entering the system today. His tax rates are the highest in American
history, and he is told to wait until 67.5 until he can collect his SS 
benefit in full. Buying a house is a dream, not commonplace. It takes two
incomes to raise one child in a decent manner. In short he has a lot more
to worry about today. 

       In short it would be nice if we could condition the masses not
to expect every need to be met by some government social program. But 
to make today's worker pay thru the nose for yesterdays political
mistakes is wrong and might cause problems in the future.