The Payroll Tax Cut Doesn't Go Far Enough

Are you excited about the Payroll Tax Holiday being extended for a year? What’s that extra    $40 dollars going to do for you?

I hope it’s going to your Private retirement fund.

Do you know the tax holiday is a reduction to your contributions to Social Security?

Let me tell you something about Social Security: It isn’t.

When I was ten years old, my Mother presented me with my Social Security Card. She told me I needed to use my very best handwriting and sign the card so it would be valid. She told me that this meant when I started working; money would be taken out of my check and saved in a in a box somewhere with my name on it, just for me. The good, benevolent Government would hold my money for me and give it back when I was too old and frail to work and support myself.

All my life my mother taught me to save 10% of any money I ever earned. She always taught me that I could never know when a rainy day would come. Saving at least %10 of my money would be my umbrella during the inevitable storms.

Don’t all parents teach their children this?

I refused to sign the card.

Why do I need the Government to save my money when I was already taught how to do it myself? What if the rainy day comes before I’m a senior citizen? If it’s my money; I want it where I can get it, when I need it.

My Mother started crying and talking about how she and my Father wouldn’t be around to take care of me in my old age and this was the only way I could avoid being a broke, and homeless old man.

Mom, may I write, Zachary Taylor?

I signed the card under duress.

We have been deceived. Why do Americans believe that this money is going into a personal account for their individual retirement? Franklin Roosevelt tried to make the program work that way in the early 1930′s, but he was advised that it would not work because such a scheme is very much Unconstitutional.

In 1935, Social Security was created as a tax so that it would not be struck down by the Supreme Court. The Government is not obliged to distribute tax money to anyone.  The Government is not an investment firm. The Government is not a bank. The Government does not have a stash of money with your name on it. The FICA deductions on your paystub are going right into someone else’s pocket.

Will there be any money left for you when you retire?

No.

Social Security is a Ponzi Scheme. Ponzi Schemes work great at the beginning, but

You Can't Win If You Don't Play!

they are all unsustainable and will fail. Ida May Fuller, the first Social Security beneficiary, had $24.75 withdrawn from her paychecks. She collected a total of $22,888.92!

There are many private options for financial planning and management, health insurance, savings and investments, retirement funding, unemployment insurance, disability insurance, anything you can think of. Listen to an AM radio talk or news station on a weekend afternoon. You’ll see what I’m talking about.

The Tax Holiday doesn’t go far enough. I would love to see the FICA Tax repealed. I know that if it were gone, they would “pay for it” by enacting a new tax or raising the current tax rates anyway. I want to see this one eradicated because the idea of Social Security is inconsistent with the principles taught to us by George Washington: Thrift, Responsibility, Self-Reliance, and Self Control. Social Security is inconsistent with the principles of the United States: Freedom, Liberty, Independence, and Capitalism.

Bernie Madoff did it wrong

The Social Security Tax is optional. If you’ve signed the card; it’s too late to opt out, but not for your children. Teach them about money. Teach your children how to budget, save, and use money responsibly. Make sure they know and understand how important it is.

It may be too late for us, but our children can be free-sovereign individuals, who will stand up tall and say to the Government, I’m a big boy or girl and I can manage my own finances, thank you.

Related articles

• Deal reached to renew payroll tax cut (latimes.com)
• Permanent Cut to Payroll Tax Unrealistic, Geithner Says (blogs.wsj.com)

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