Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: notesfiles - hp 1.2 08/01/83; site hp-pcd.UUCP Path: utzoo!watmath!clyde!burl!ulysses!mhuxr!ihnp4!zehntel!hplabs!hp-pcd!john From: john@hp-pcd.UUCP (john) Newsgroups: net.flame Subject: Re: Social Security Message-ID: <4000031@hp-pcd.UUCP> Date: Wed, 9-Jan-85 12:16:00 EST Article-I.D.: hp-pcd.4000031 Posted: Wed Jan 9 12:16:00 1985 Date-Received: Mon, 14-Jan-85 00:39:51 EST References: <862@amdahl.UUCP> Organization: Hewlett-Packard - Corvallis, OR Lines: 34 Nf-ID: #R:amdahl:-86200:hp-pcd:4000031:000:1436 Nf-From: hp-pcd!john Jan 10 09:16:00 1985 <<< It just goes to show that if you are going to be in a pyramid scheme,then make sure that your on the top. The thing that scares me the most is all of these IRA's and 401K plans that are popping up. They make great sense if you assume that there will be no major change in the tax system over the next 30-50 years but that is very unlikely. Social Security isn't going to just die. There will be years of trouble and shortfalls that congress will try fix by drastic legislation. Possible examples include: 1) raise the general tax rate. You shelter $2000 from a 35% tax rate to pay it later at 40%. 2) Drop FICA withholding and increase general tax rate by the same amount. That will not hurt the working class that are rioting in the street but will pull in extra income from taxing investment income. Who lives on investment income? Why all the baby boomers who are retired and on a fixed income. 3) Nationalize all the IRA accounts. All payouts from your account will be made through the social security administration after deducting withholding and taxes. Of course your social security benefits will be adjusted according to your ira income. You have to assume that in a squeeze between the working class that are taxed to the hilt and the retired who need social security that the big losers will be those who locked away large amounts into ira accounts. John Eaton !hplabs!hp-pcd!john