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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (159903)	10/24/2008 5:17:34 PM
From: neolib	Read Replies (2) \| Respond to of 306849

They feared that people would forget why it was implemented in the first place, would see it as a general tax instead of a insurance premium paid to the government in order to cover the loss of income due to the inability to work either from old age or disability. Err...unfortunately, the government forgot this first. Passive income doesn't necessarily stop when the person retires or becomes disabled. Making passive income subject to the tax would have the effect that everyone who pays FICA on passive income would continue to receive the passive income as well as receive the SS benefit in retirement since your payout depends on what you pay in! This would happen unless they break the link between premiums paid in and benefits received which is where your plan would be headed. Uh?? Who cares? It treats both wage income and investment income the same way. Heck, tax SS income as well! What you are failing to understand is that any such scheme must also reset the tax rates lower because the base expands. It frankly pisses me off that all the current crop of SS geezers who paid 5% total FICA during their working careers think the government is free because their SS is not taxed. Tax'em as well! Then lower all our taxes, which gives us current workers some relief, and lets the geezers see how expensive they are to support. I would support replacing FICA with mandatory retirement savings plans with an insurance element as long as the government no longer ran them ROTFLMAO! You would suggest they invest in those safe mortgage security products backed by the American dream of home ownership the most solid of American ideals, backed by CDS insurance issued by AIG??? Greenspan partially woke up in his last round of testimony before Clowngress, but he is still clueless about investment bubbles. He actually thinks investors will be more cautious in the future, and that this is better than any regulation. To such a fool, I have only one comment: Consider the Lotto!