Social Security Gambit Unmasked
Barack Obama’s economic policies are classic socialism. He claims to represent “the middle class” and “working people” and “working families” and “the poor”.
But he really represents only one essential idea – an expanding government – no matter what form that idea may take. This is to give control of all economic decisions to Big Government socialists like Obama.
And if that government power helps one group or hurts another group, then that it fine with Obama. It makes no difference.
Because once liberals have that power, they control everything and can enrich whomever they want including themselves. And so they will use any means to get that power including temporary tax reductions, which Obama suddenly is championing for Social Security now that his re-election is on the horizon.
But remember that Obama at the same time wants to give every one of his cronies exemptions whenever a Big Government policy hurts them, such as giving his labor union friends waivers on ObamaCare.
So he can rig the tax game any way he wants while ultimately sticking it to the middle class that pays much of the tax burden.
Because ultimately a growing government hurts all people who pay taxes and favors those who, without conscience, collect that tax money in the form of payouts/handouts/subsidies (i.e., liberals, welfare staters, the freeloader poor, government workers, solar energy companies, Obama-friendly billionaires like Robert Kennedy etc.)
Look at the recent gambit for maintaining the temporary Social Security tax reduction for another year. According to 2010 legislation, each American worker who normally pays 6.2% of his check to Social Security taxes has seen the rate reduced to 4.2% for 2011, or a savings of about $1,000 for a person or couple who makes $50K a year.
That’s a good chunk of cash. And it is a good idea. Social Security taxes are abhorrently high in the first place. And the rebate surely has helped the ailing economy somewhat like all tax reductions do. Obama is touting it as a big break for the middle class – which it is – and now wants it implemented for 2012 too.
Yet he is offering this after he has spent his entire life among people who insistently raise taxes in every way every day on the middle class.
He is doing this because this Social Security tax ‘holiday’ is only a political ploy like everything Obama does. Because Obama is not a supporter of the broad middle class, which tends to be somewhat conservative. After all, the Tea Party movement is a true grass-roots middle-class movement and Obama and his Democrat allies despise the Tea Parties.
So why is Obama seeking to pass an extension of this temporary Social Security tax holiday?
It is because HE is being portrayed as the one controlling the debate, not the Tea Parties. HE gets to appear like the generous one. It is all political.
In fact we conservatives believe that everyone who pays taxes should get tax relief and that everyone who pays no taxes should start paying them, including poor people.
And we also believe that all tax relief should be accompanied by major spending reductions and reforms so that lower taxes coupled to lower spending can produce strong growth to benefit all, not just the people whom Obama favors.
Because this formula – reduced taxes and reduced spending – always works for the common good. Every time.
We conservatives indeed believe that Social Security taxes should be reduced. But we also believe in major reforms to the SS system including reduced taxes, voluntary participation, personal retirement accounts and raising the retirement age to 70 and eventually to 80 (older than the average 2011 lifespan of 78.4)
But Obama wants zero reforms. He wants to keep the retirement age at 65, and to keep SS payouts high in order to crash the system so that everyone agrees to pay more and more in SS taxes to keep it going. This gives more and more power to the government, just as Obama wants.
Why should the official SS retirement age be raised to 80?
Because when the first SS check was issued in 1940, the official SS retirement age was 65 but the average lifespan was only 63.6 years. So SS originally was intended as old-age “safety net” not an income supplement for people to retire and then live another 20 or 30 years, which has happened as lifespans have increased rapidly and dramatically since 1940.
And this current system under which SS benefits start at 65 is utterly unsustainable.
Raising the SS retirement age to 80 would not mean you must wait until 80 to retire. You can retire any time you want even today, even at 50. But you cannot collect SS today until 65. And if the age is raised to 80, you still can retire at 65 or 58 or whenever. It just would mean that you could not collect Social Security until you are officially in “old age” at age 80.
This would return the system to a genuine “safety net” program, like it was when it was founded. And overnight it would create massive surpluses in SS, and would eliminate the untenable debt load that the current system imposes on the economy.
Obama, on the other hand, now wants this 2% Social Security tax holiday for the middle class without any reforms whatsoever. In other words, he is putting SS further in the hole than ever by taking billions out of it, and he wants to be seen as the giver of a great gift to the middle class, and to portray the Republicans as being stingy.
This is a ploy and it only will put further strain on the SS system which now is running deficits that only are going to grow astronomically in the next 20 years as 77 million baby-boomers retire.
So conservatives want to see a complete overhaul. Obama does not. But he is using the current SS debate to act as if he is a generous guy on the side of the taxpayer.
He is not. Because for every rare and temporary middle-class tax ‘reduction’ or ‘rebate’ that Obama offers, the Democrats are raising taxes on the middle class in many other ways including through increased property taxes, increased state taxes, increased sales taxes, higher fees for all state and federal applications like driver’s licenses, higher business taxes that are passed on to consumers etc. It never ends.
Remember: Obama never wants to lower taxes in any way except when A) it is temporary and for political purposes; B) it a lower rate only for his cronies; C) when he can be portrayed as the one giving the tax reductions; and D) when lowering taxes helps to put more Democrats in office and more power in the hands of government over the long run.
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