Wednesday, July 27, 2016

Got gold? Congress submits bill to force employers to create a new retirement account for workers since social security is now insolvent

Last week, we wrote here about the fact that the annual Social Security Trustees report showed that the retirement fund had a short fall of $6 trillion dollars, and an overall deficit of $32 trillion.  In essence, this means that Social Security is insolvent and will not be able to pay out benefits to anyone within a few year's time.

So with the fact that Congress had kicked the Social Security can down the road for two decades without doing a thing to fix known deficiencies with the program, and has waited until now when the fund has finally bankrupted itself, what can America's legislative body since we have reached the point where The Stuff has Hit the Fan?

How about create a completely NEW retirement fund from scratch, and make employers pay additional taxes on top of FICA to pay for it.

It was only a few weeks ago that I told you about the government’s annual report on Social Security
It was a veritable death sentence for the program. 
The Board of Trustees for Social Security (which includes the US Treasury Secretary) wrote that major parts of the program have already run out of money, and the rest of Social Security will run out of money in the next decade. 
Well, the government has figured out a solution. And it’s genius. 
Two weeks ago a new bill was introduced on the floor of Congress that, just like all the other really dangerous legislation, i.e. USA PATRIOT Act, this bill has a catchy acronym. 
It’s called the SAVE UP Accounts Act, which stands for. . . 
. . . “Secure, Accessible, Valuable, Efficient Universal Pension Accounts Act”. 
In short, SAVE UP mandates certain employers and businesses in the United States, including many small businesses, to start contributing a fixed amount of money per employee into a brand new national retirement fund. 
Based on the contribution requirements and the average wage in the United States (about $50,000 annually), the bill is slapping a 2% wage tax on employers. 
Funny thing, employers are already paying 6.2% to Social Security. 
So an additional 2% tax effectively constitutes a 32% proportional increase. - Sovereign Man
Since employers have already cut many of their worker's hours thanks to Obamacare, and even more over the past six months due to mandatory hikes in minimum wages, what do we think will be the reaction from businesses once this new tax is added to their overhead costs?

And even more, with the nation's largest pension fund (Calpers) admitting to be vastly underfunded, and the largest civilian pension fund (Central States) cutting benefits for all their retirees, isn't it past time that we all took responsibility for our own retirements, and make sure it isn't in paper assets that will be bailed in when the government itself becomes completely insolvent?


"So with the fact that Congress had kicked the Social Security can down the road for two decades without doing a thing to fix..." Strange that people (particularly Washington elitist) will believe this kicks the can down the road for 20 years. So, what happens when a large number of companies go broke and bankrupt? Suddenly there will a huge number of retired people starving to death. Retirement isn't working for most Americans. Proof of this is at Wal Mart where there are greeters over 65 yrs old. Now the goober-mint wants to act like the vote to rob SSI a few quarters ago didn't have an impact on our lives. How stupid.

Post a Comment