Breaking Promises

For as long as I've been in this business, I've been warning people that the entire Social Security system is built on a teetering house of cards and that people in my and later generations will end up being stiffed when we retire, even after paying in hundreds of thousands of dollars during our working lives.

Although I don't think it is in the least bit fair, I still believe that to be the case and continue to believe that the only salvation for the bankrupt SS system is to install a means test for who will receive benefits. Anyone who has a net worth over a certain amount specified by our rulers in DC, or an annual income above a certain level (also specified by our rulers) will receive no SS benefits, regardless of how much had been paid in to the imaginary trust fund. This will increase the demand for services of those who assist in impoverishment planning, which currently deals mainly with qualify people for Medicaid assistance.

When I tell people this, they almost always express disbelief and claim the government would never break such a sacred promise as the one to support us in our golden years. As one who believes that we can learn from history, I have to remind them of examples of broken promises from our esteemed rulers in DC, starting from the treaties with the native American Indians to the current taxation of SS benefits in spite of the original promise that they would always be tax free to compensate for no deduction for the payments into the system.

I just came across this story of how the Feds are quite openly breaking the agreement that existed with military veterans who served for 20 years or more to cover their lifetime medical costs. For those skeptics who believe in the Social Security Tooth Fairy, ask yourself this. If the Federal government has no qualms about stiffing men and women who risked their lives for the security of this country, what's to stop them from doing the same thing to everyone who has paid in and has been counting on a monthly retirement check from the SSA?

KMK
- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 12/02/2002 08:21:00 PM Send this post: