I still don't trust SNOPES for any answers. And I don't trust the Government to take care of me when I retire in 10 years.
However, if you read that page, we pay Social Security taxes, means the government get's it's share up front. And we all know the SSA account is being used as part of the general fund (watch the news). It is common belief that SSA will be bankrupt soon because of this practice (who did it is a moot point, it's happening) - some say the next couple years, some say 2018 as the page suggests and the optimists think in the 2020's.
At any rate the G has been using the SSA as part of the general fund for so long with 'promises' of pay-back that some folks actually believe it will happen :shock: . I'm the pessimist looking at the current deficit of + $12Trillion (look at the whole enchilada, not just what ABC says - and that would be the All Barrack Channel).
Back to SSA – Think about the rules for a:
- ROTH IRA, it’s after tax you’ve already paid the government to waste your tax dollars. This is your “discretionary funds” you invest for YOU because the government won’t take care of you (unless you think euthanasia fits that description). The principle paid in is tax exempt as are the profits returned from the investment. And they are looking at making changes to this, so get one NOW and get grandfathered for what you pay in and take out :t:
- In a traditional IRA, the principle is paid BEFORE taxes (to lower your tax basis) so the government doesn’t get so much of you're money up front to waste on somebody’s pork project like turkey ranches in South Dakota, or alligator research in Florida, or the famous ‘Bridge to nowhere’ in Alaska [that Palin shot down]. So now 85% every penny withdrawn at retirement is taxable. Which was not in the original bill/law.
The initial guarantee that SSA payment would have taxable limits is true. It was created to provide an income (not a life style, just an income) to American workers emphasis added :?: . Looking at tax tables, when you retire your tax basis should be less so the level of taxation should be lower (unless you were really crafty and bought into some good stocks/bonds that provide a lifestyle, not just an income :oops: )
However, It is also true our ‘Elected Representatives’ have usurped that original SSA guarantee and more than doubled what you are taxed on withdrawal (33% is now 85%) thereby getting more of you're money twice – taxed when you earn it and taxed again (on 85%) when you withdraw it. So the average SSA payment is $2,413.30 before taxes (my last SSA stament said $1,850, guess working 40+ years [including 30 years Military] I'm still below average 111!!! ).
Quick math:
monthly $2,413.30
annually $28,959.60
And according to the 2009 tax tables, you're in the 15% bracket. So:
your annual income @28,959.60
@ 85% = $24,615.66 for taxable income
@ 15% = $3,692.35 in taxes (and non-taxable income)
Taxable income - taxes = $20,923.31
add back the 15% Non-taxible income = $24,615.66
Why bother, $3.7 K is a drop in the bucket :shock: ?? Because the IRS gets paid to make you go through the Income Tax headache drill so they can employ all those other governement workers!!
But $24.6K a year is an income, NOT a life style. Not a lot of Jeep parts, groceries, gas, rent/mortgague, etc. in that.
And I might make another note. Up until 1983 congress did not pay into SSA and technically they cannot draw social security at retirement. But how many of those old fools are still around (as in alive, not just in chambers)? LOTS!!!
It is also true that every Member of congress receive their last paychecks for life. So since 1983 how many have “retired” from “Public Service” that are getting $165,000 a year “Retirement”? too many to count.
And this benefit will be applied to all the 'CZARS' that Obama has appointed as per 940.2 (E) of the SSA handbook. So there are another 35 people (or more?) that will receive $100,000 + a year for life!! And they bitch about taxing a $25K retirement income?? 111!!!
So that means, a 1 term Senator now will get $165,000 a year (or more like Pelosi and others) for life. And will STILL receive $25K from SSA (if your average and my statement say's I'm not?). How is that fair or possible? They voted it in for themselves.
And if you want the math here, a straight $165K retirement is in the 35% bracket
monthly $13,750.00
annually $165,000.00 taxable income (not using AGI [adjusted gross income], just straight numbers)
@ 35% = $57,750.00 taxes
But if you own anything you should be itemizing deductions and use AGI!!
So maybe Obama has it right? Each retired representative should be paying for 2 American workers retirement each year?? That would make 900 people happy :mrgreen:
Figure the odds of THAT happening and all these 'representatives' using the 1040 short form and no lawyers!! ... #-o
You could also use the presidents salary
"The president earns a $400,000 annual salary, along with a $50,000 annual expense account, a $100,000 non-taxable travel account and $19,000 for entertainment.[16][17] The most recent raise in salary was approved by Congress and President Bill Clinton in 1999 and went into effect in 2001"
We live in a world of corrupt government – time to trash the present pile and elect some new ones – that have to pay into SSA and get only what SSA has to offer, not the life time bonus! :?
