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Politics : The Trump Presidency -- Ignore unavailable to you. Want to Upgrade?

To: Lane3 who wrote (6137)	1/14/2017 10:27:35 AM
From: TimF	Read Replies (1) \| Respond to of 364351

And I was making the point that SS, having helped our parents, made it easier for us to sock away money that we might have spent on them Except that its been taking 12.4 percent of our wage income from the first dollar. (with an even bigger percentage impact on take home pay, maybe pushing 20 percent) It would be easier to sock away money. Huh??? The money we save earns interest (at least it used to). Yes and no. More no than yes. It doesn't earn any interest for us. Your highest 35 years of income are used in the calculation. If it was paying you interest you would make more if your first 35 years was the highest, and still more (much more) if you made your lifetimes earned income in the your first year, with a lot less if you earned most of your money at the end of your career. But it doesn't work that way. There isn't any individual accounts or individual interest, just payout formulas. The treasury does send interest payments to the trust fund for the borrowed money. But its the government moving money from one of its pockets to another. Its an accounting entry but not a real store of wealth or real source of income. Those "interest payments" come from taxes like anything else the government spends.