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From: andy@altos86.UUCP (Andy Hatcher)
Newsgroups: net.taxes
Subject: Re: SS deduction
Message-ID: <125@altos86.UUCP>
Date: Sun, 5-May-85 19:09:53 EDT
Article-I.D.: altos86.125
Posted: Sun May  5 19:09:53 1985
Date-Received: Tue, 14-May-85 06:40:42 EDT
References: <5762@duke.UUCP> <121@pyuxh.UUCP> <632@ssc-vax.UUCP> <434@hou5h.UUCP> <884@peora.UUCP>
Organization: Altos Computer Systems, San Jose, CA
Lines: 40

I would gladly give up and all the contributions that I have ever made
into Social Security and any future payments, if I could just stop
making new contributions.

I doubt very strongly whether SS will be around when I get to retirement
age (I am now 26).  I am certainly not depending on it (I have 2 IRA's
and a 401k plan, as does my wife).

What people don't seem to realize (or care about) is that SS can not
be a selfsustaining benifit plan.  All the money that goes into the
system is used to pay existing claims, but by the time the
contributor reaches retirement age the cost of living has gone up,
and the number of retired people has increased.

Social Security is just like the pyramid schemes you read
about in the newspaper:

	10 people contribute $2000 a year into SS to support one person's
		benefits of $20,000
	when those 10 people reach retirement age, there will have to 
	be 100 people (or more, because of cost of living increases)
	to support them.

The problem is that you very quickly run out of people to pay.

If SS were run the same way as an IRA it wouldn't be so bad, the money
contributed would be set aside in an account, just for you, invested
for you and would not be used for anything else, a small portion of
the money collected for you, could also be used to buy life and disability
insurance for you.

I think that sooner or later, the government is going to have to bite
the bullet and eliminate the SS program as we now know it.

Anyway, enough rambling,
		Andy Hatcher
		Altos Computer Systems
		ucbvax!dual!lll-crg!vecpyr!altos86!andy

P.S. All opinions are my own, etc. etc.