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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (182014)	2/3/2004 3:11:57 AM
From: Amy J	Respond to of 1575502

Hi John, while the article correctly argues unfair taxation, it incorrectly assumes poor people do not want to save their way out. Savings should be encouraged, especially for the poor. If you look at the statistics, poor people do indeed want to save and many have saved their way out: It may surprise people to learn the statistics on Americans show the bottom quintile contains a group of people that actually have more savings than a fair number of folks in the top-most quintile. RE: "Payroll taxes siphoned into millions of individual Social Security accounts could suck up another $1 trillion over ten years. The problem for low-income workers is what they will do if their personal accounts do not make up for the retirement income they will lose if basic Social Security benefits are cut--which most of the proposals now being circulated would do in some form. " The reality is, Social Security under either Party (Dem or Rep) is planning on cutting basic benefits by at least 1/3, and probably even more. The economic models under any Party, consistently show there's no other way, as evident by SS's printed material sent out to every American. To pretend otherwise, such as this writer is doing, is to not face reality. The writer is not helping the situation out by putting his or her head in the sand, on this issue. The only way to minimize the impact of a short-funded SS plan, is to let the funds grow over time, where the growth is compounded by interest. But the only way SS funds have a chance of growing over time, is to partition away a portion of the money from the gov't, into a deferred savings account that neither the gov't or the person can touch until they reach a specified age. In conclusion, while it may cost 1T for this transition in the short-term, this writer certainly is not aware of the enormous costs exceeding 1T we will have if there is no transition. The complete long-term picture savings due to the compounded nature of interest where money grows more over time, is key to saving SS. Regards, Amy J