Wednesday, January 16, 2013

REDISTRIBUTING THE WEALTH


Many Americans noticed that their first paychecks for 2013 were a little lighter the last few weeks,  thanks to a payroll tax increase that is forcing millions of Americans to make the kind of tough budget cuts their representatives in Washington lawmakers seem unwilling to tackle.
Thanks to the end of a two-year cut on payroll taxes which fund Social Security, the tax has risen back up to 6.2 percent from 4.2 percent, costing someone making $50,000 annually about $1,000 per year and a household with two high-paid workers up to $4,500.


What saddens me is that many Americans believe that their Social Security contributions are being held somewhere in their name, earning interest, when the truth is those dollars are being spent today.
Mark Zandi, chief economist at Moody’s Analytics, told The Associated Press that the higher Social Security tax will slow growth by 0.6 percentage point in 2013. But for the average American worker who earns $41,000 – and will receive $32 less on every biweekly paycheck moving forward – the change will not be an “insubstantial hit,” analysts told FoxNews.com.
“And I think a lot of people don’t even realize this is happening,” said  Michael Tanner, a senior fellow at Cato Institute, a Washington-based think tank. “This kind of just slid by the wayside with all the talk of the fiscal cliff.”
Simply put, less money “definitely will be” a shock for many Americans toiling in an uncertain economy, Tanner said, adding that many will restrict impulse purchases rather than alter long-term financial planning.
“People will have less money in their pockets, so by definition, they’re going to have to make do with less,” he said. “How they change their behavior remains to be seen.”
I can only hope that young Americans wise up and take a hard look at Social Security as a whole. People under the age of 50 need to start asking serious questions as to why they’re paying more into a Social Security system that they are increasing unlikely to get any benefit from. 
This is not a party issue. Both parties have been stealing from Social Security for several decades, have not taken action and have been lying to you about it.


GO BACK TO SLEEP AMERICA....YOUR MONEY IS SAFE WITH OBAMA

9 comments:

  1. "I can only hope that young Americans wise up..." A noble idea, I think ultimately in vain. If there was hope that this nation would wise up, Obama would not be a two-term president.

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    1. I hear you, CW...but at least some of the younger americans seem to understand things are not working...maybe they'll see the light on potential solutions before I leave the building...

      Larry

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  2. There are so many layers to this problem. The first one is that most Americans are asleep. That enables the President to pretty much say anything and everyone just "nods" like sheep. The press doesn't question him. Going off-topic, in 2006 Obama said it would be "irresponsible to vote to raise the debt ceiling" and now it would be disastrous to the economy if we didn't Is anyone paying attention?

    Back to Social Security... Obama is going to continue to win on all of these issues because he tells a better story. Even when his story keeps changing. No one holds him accountable to his previous story (as illustrated above). Romney tried to provide a solution to Social Security and Obama just scared the sheep with his better story. So long as you can tell a better story, even if is a lie, you will continue to win.

    I am sure how fleeced the sheep will have to get before they realize the Emperor Has No Clothes. Or all of THEIR clothes.

    For the record, I think now is a really good time to be getting your money out of the stock market, any IRA that you can, 401Ks, any retirement account that you can, and even Federal banks. I am not saying not to use Federal banks at all, just not for large quantities of money. I would keep my savings in a local bank or private safe, whichever feels more comfortable to you.

    I haven't read but a few of your old blogs, so you may have blogged on about this at length. But, since you have thrown out this idea that your money is not safe with Obama (it isn't), that means it is time to get proactive. Anyone who isn't asleep needs to start protecting what little they have left.

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    1. The problem with pulling the money out of IRA/401K, etc, Robin, is the tax implication.

      I wish I could remember the statistic I read about how few baby boomers had no retirement savings beyond Social Security, but it was alarming.

      Those who have saved will be penalized if all of this results in the hyperinflation of our currency (people with massive debt would be rewarded).

      I'd take your idea one step further and invest in silver coins, not for the investment vehicle, but as a hedge against an extreme currency valuation change.

      I'd keep the silver in the safe. next to your unregistered gun (which can't be confiscated if they don't know about it).

      Larry

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  3. I'm a big believer in wealth redistribution. I think everyone who receives a paycheck should send a dollar of it to me. I will in turn distribute one dollar to every homeless person I see. I will be sure to avoid certain parts of town as much as possible and only leave my house if absolutely necessary or to go to fun places where I am unlikely to run into any homeless folks. You can be sure that the dollars you have entrusted to my care will be safe and spent wisely on welfare--my welfare.

    Sounds like a plan doesn't it?

    Lee
    Tossing It Out

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    1. Lee-

      I always knew you were a "giver!"

      Larry

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  4. Imagine there's no money
    It's easy if you try
    No shoes below you
    Above you only pie
    Imagine all the sheeple
    Working without pay

    Imagine there's no handguns
    It isn't hard, you foo’
    Nothing you could rebel with
    And no freedom for you
    Imagine all the sheeple
    Craving milk and meat

    You may say I'm a schemer
    But I'm not the only one
    I know someday you'll fear us
    And the world will be undone

    Imagine no possessions
    ‘Cept what I took from you
    No need for bread or circus
    Your playing days are through
    Imagine all the sheeple
    Sharing all the pain

    You may say I'm a schemer
    But I'm not the only one
    I know someday you'll fear us
    And the world will be undone

    ~ D-FensDogg
    ‘Loyal American Underground’

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    1. McDogg-

      I'm holding up a lighter!

      Encore!

      Oh shit....it's real.

      LC

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  5. DOCTOR DISCDUDE ~
    Ha-Ha! I'm glad ya liked it. (Man, when the lighters come out, you've hit a "high" note!)

    Something about your blog bit here put the idea into my mind. At first I was only going to rewrite one or two verses, knowing you'd understand where they came from. But as I worked on it, I started to get on a roll and decided to see if I could "go the distance".

    I can't help "imagining" how it might have turned out if I'd had a little 80-proof help in rewriting it.

    ~ D-FensDogg
    'Loyal American Underground'

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