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Attention Gen X & Gen Y: Sign this petition to save $120,000 (and Social Security)


closeup of US Social Security cards

closeup of US Social Security cards (Photo credit: SalFalko)

We are urging all Gen X & Gen Y taxpayers to sign the following petition:  http://wh.gov/l8s3E

According to the Social Security Administration, Social Security will be insolvent by 2033.  This means that if you were born after 1968, you will likely never receive a check from Social Security, yet you will continue to pay taxes to fund the retirement of others who paid far less than you will.

What Does That Mean For You?

If you are an average Joe/Jane, you probably make around $50K/year.  You will end up paying approximately $120,000 into Social Security before it goes belly up in 2033 (including your employers contributions).  You will get exactly 0% return on that investment, since you will never see a Social Security benefit check in your lifetime.

If you are a successful Gen X or Gen Y business person (or you think you will be in the near future), you could pay up to $500,000 into the Social Security system between now and 2033 (counting your employers contributions).  You will pay over $500,000 into an entitlement program that will never pay you a dime in return!

Ready to sign the Petition yet?  Click here:  http://wh.gov/l8s3E

Why Are Employer Contributions Important To Consider?

First of all, if you are self-employed, which many of the affected folks are, then you pay both the employee and the employer contribution.  Second of all, Employers pay over $400 BILLION dollars into the program each year.  This is money that could be given back to the employees in raises, given back to the consumers in lower prices, or given back to the shareholders in higher stock prices.  All of these affect YOU more than Social Security ever will, since you will NEVER receive a Social Security benefit check.

I assume that you are ready to sign now?  Click here:  http://wh.gov/l8s3E

This is a follow-up to my article on why Social Security should be labeled a Ponzi Scheme:

https://toddhagopian.wordpress.com/2013/12/02/gen-y-social-security-the-ultimate-ponzi-scheme/

In today’s article, I am targeting my comments directly at the people who the politicians are hurting most by not reforming the popular entitlement program.

Attention Gen YYOU need YOUR help to stop this from happening!

Sign this petition (http://wh.gov/l8s3E), share it with your friends, post it all over Social Media, and make a difference today!

 

 

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$50,000 of income and $315,000 in Credit Card debt – What are you thinking???


Government spending

Government spending (Photo credit: 401(K) 2013)

I think that we can all agree that if we had a friend who only made $50,000 each year, but had $315,000 in credit card debt, we would be worried about that person’s mental health…

If they asked you for help, would you recommend that they work 6 jobs so that they can continue spending the same amount of money and never get out of debt?  Or would you recommend that they take on one extra job while drastically reducing their spending while trying to pay off their credit cards?

Of course, you would likely do the latter.  When you have a spending problem, it is okay to want more income, but controlling your spending is an absolute must in order to get your house back in order.

If the United States Government was a person, they would be this person!

Unfortunately, our government has chosen neither of the options outlined above.  They have basically taken on a few extra hours at work (in the form of more taxes) while deciding to spend even more than ever before (in the form of ObamaCare).

The Democrats have decided that they do not want to cut spending, because they think they can raise enough taxes to get out of this mess.  Here is the truth, they could raise everyone’s taxes by 25% right this second, and use that money solely to pay off the debt, and it would still take 15 years to get back to even.  That doesn’t even count the Trillions of dollars they are adding to the debt each year.

Conclusion:  The debt is too big to tackle by raising revenue without cutting spending.

The Republicans believe that we can stop cut spending, without raising taxes, and get this mess under control.  Here is the truth, in order to make this work, the government would have to cut 90% of its spending for the next 20 years in order to achieve this goal.

Conclusion:  The debt is too big to tackle by cutting spending without raising revenue.

The sooner we can all agree to these simple facts, the sooner we can help our dysfunctional friend get back on their feet.

We do not need conservatives, we do not need liberals, we just need people who know how to do math.  Anyone out there fit that description?

If so…Please, Please, Please run for congress!

This is not about political parties, this is about a person who is riddled in debt looking themselves in the mirror and deciding that today is the day to stop living a lie.  Today is the day when they cut back on what they can live without.  Today is the day when they decide to spend more of their time working hard to make some more money so they can pay off some of their debt.  Today is the day to make a plan, execute a plan, and endure some tough years on their way to achieving the American Dream.

If they don’t, the American dream as we know it will not be available to any one of us in the future…

Socratic Method & The US Federal Income Tax


Cropped image of a Socrates bust for use in ph...

Cropped image of a Socrates bust for use in philosophy-related templates etc. Bust carved by by Victor Wager from a model by Paul Montford, University of Western Australia, Crawley, Western Australia. (Photo credit: Wikipedia)

John:  “Rich people should pay more in taxes and poor people should pay less.”

Socrates:  “How much more should the rich people pay?”

John:  “They should pay their fair share, since they are making so much more than us.”

Socrates:  “Define their fair share for me.”

John:  “Well, if someone makes ten times as much as me, they should pay ten times as much in taxes.”

Socrates:  “How much money do you make John?”

John:  “My wife and I make $45,000 a year.”

Socrates:  “So, if you two paid $10,000 in taxes, someone who makes $450,000 a year should pay $100,000 in taxes?”

John:  “Yes, that sounds about right.”

Socrates:  “Okay, so what I am hearing you say is that people should pay their fair share?”

John:  “Exactly!  I honestly don’t know how anyone could really argue against that point!”

Socrates:  “So, someone who makes $45,000 should not be allowed to pay zero in taxes?”

John:  “Of course not!  Following our logic, they would be paying way less than their fair share.”

Socrates:  “So, if a group of people make 45% of the total income, they should not have to pay over 70% of the taxes?”

John:  “Obviously not.  Following our logic, they would be paying way more than their fair share.

Socrates:  “So, if there was a tax code that forced people who make up 45% of the total income pay over 70% of the taxes AND allows 47% of income-earners to pay zero taxes, that would not be a fair system?”

John:  “Of course not!  That would be way too far in the other direction, you are trying to make me look like a Radical Communist!”

Socrates:  “So, in that system, you would actually want the rich to pay less and the poor to pay more?”

John:  “I guess, if that system was actually in place, I would be arguing for the rich to pay less and the poor to pay more.”

Socrates:  “But John, the system I just described is the current system in the United States.  I thought you said the rich don’t pay enough today?”

John:  “Well…uh…I…hmmm…”

Socrates:  “True wisdom comes to each of us as we realize how little we understand about life, ourselves, and the world around us.”

Foreign Aid: The Real Story On How Much It Costs


Libyan Protesters Demand Security in Tripoli

Libyan Protesters Demand Security in Tripoli (Photo credit: United Nations Photo)

Over $1,000 per Federal Tax-paying Household goes to Foreign Aid every single year.  That is a fact.

The Liberal media enjoys calling attention to the fact that Foreign Aid only makes up 1% of the National budget.  They like to ignore the fact that Foreign Aid has been going up drastically ever since our economy has been collapsing.  Our government has decided that now is the best time to send money abroad, rather than use it at home.  They also fail to mention the fact that Foreign Aid would be much more than 1% of the National budget if the National budget was as small as it should be!  We are adding trillions of dollars to the National Debt per year, so assessing different programs as a percent of the National Budget is just a shell game to make everything look small so that you won’t realize how quickly the numbers add up.

Now that we are knee-deep in the Great Recession, we need to look at every expenditure and justify it.  So…how do we justify things like…

Foreign Aid has grown over 300% over the last ten years…while the economy has been declining

We gave Afghanistan over $11 billion in 2010

We have Pakistan almost $3 billion in 2010

We gave Israel almost $3 billion in 2010

We gave Iraq over $2 billion in 2010

Egypt and Haiti also got over $1 billion

How do we justify all of this spending when we are so broke at home?  I am not arguing that we should knock it down to zero.  I am simply arguing that our Foreign Aid should not be rising 300% during a time when we have had terrorist attacks, wars, and a Great Recession to deal with.  That, in my opinion, is irresponsible government.  What do you guys think?  We would love to hear from you.  Share this with your friends and family, and encourage them to share their thoughts.  Enjoy!

We Don’t Want Your Social Security $, Give Us Education Instead – Gen Y Petition


We, Generation Y, are offering up a solution to the Social Security Crisis that is gripping this country.  While our legislators continue to ignore the issue, my Generation Y brethren are busy coming up with innovative solutions to how we can get out of this mess.  We are offering to give up our “right” to our social security benefits in exchange for a free/subsidized education and the promise that our taxes will not be drastically raised to support a failing public policy which has rightfully been called a Ponzi Scheme.  While Social Security was once a great institution, powered by the pay-as-you-go methodology, where an equal number of people are paying into a system as the number who are being paid out.  It is now a Ponzi Scheme where a certain number of people are paying into the system and an exaggerated number of people are taking money out.  This system will collapse when the revenue cannot match the income payouts, which is the definition of a Ponzi Scheme.

In this article:  https://toddhagopian.wordpress.com/2011/09/29/gen-y-social-security-proposal/  I have laid out a possible plan for how to get out of Social Security once and for all, and I am asking Gen Y to sign this petition by commenting on this blog post (or the one under the attached article).   In exchange for continuing to help fund the Baby Boomer’s retirement, Gen Y is asking for subsidized advanced education and an easing of the retirement savings regulation, which will both allow us to be the first generation in a 100 years to fully fund our retirement without the support of the Federal Government.  We are also asking that the Baby Boomers make some sacrifices of their own, however small, so that we can put an end to this system before it has disastrous consequences on the nation’s economy.

Please sign the attached petition by offering a comment in support of the petition below.  We are also very open to hearing your other ideas, if you are willing to offer them for public consumption.  This petition is an effort to change the conversation from “How to fix Social Security?”, to “How to end the losing battle that we are fighting with Social Security?”  If the politicians will not act, then we need to put our ideas on the table and force them to discuss them.  I hope you participate in what I anticipate will be an extremely animated discussion on this board.  Thanks!

Gen Y Social Security Proposal


Gen Y Social Security Proposal

The sad reality is that Social Security, in its current form, will never be around for most of us in Gen Y when we retire.  Politicians are too scared, too ideological, or too stupid, to be able to come together and pass a compromise that will keep the system working.  Currently, most sources say that the system is set to run out of money in 2039, well before we are eligible for the dollars.  The system started as a Pay-As-You-Go system, which takes money from people who are working now and gives it to an equal number of people in retirement. Today, under 25% of the population is over 65, but that number will rise to almost 40% in 2040.  What that means is that there won’t be enough people working to support the people who are collecting Social Security.  This is the definition of a Ponzi Scheme.  Money from new investors is used to pay old investors until the system collapses because there is too little “income” to pay out the expected “payments”.  What started as a great program, is a great program no more.  This Ponzi Scheme needs to be addressed in a major way and it needs to be done now!

No one is taking action on this issue, so I am calling on my fellow Gen Y’ers to be the solution to the problem today.  I am asking you to sign a petition to forego your Social Security Retirement benefits.  If you would like to sign the petition, all you have to do is make a comment on the bottom of the page in support of the initiative.  All we are asking is that the politicians put together a group to study this as a possible solution to the Social Security Crisis.

Why Should You Do This?

At the current rate, you will pay 4% – 6% on your income for your entire working life.  That means that a worker who averages $50,000/year could pay over $125,000 in taxes and never see a dime of Social Security if the politicians are too scared, too idealogical, or too stupid to pass real social security reform.  This means that most of you will get less than 25% of that money back.  In order to keep Social Security solvent, the government is going to have to drastically increase the social security tax, which will make this return on investment go even lower for those of us who will be working for the next 50 years.  This is not an investment, this is a Ponzi Scheme!

What Will You Get In Return?

Under this plan, you will continue to pay the 6% until 2040, but anyone who has paid at least 10 years of social security taxes will be eligible to have their student loans eliminated after the 10th year of paying the social security tax.  This means that if you start working the day you graduate high school at age 18, your government student loans would be paid for when you are 28 (you would pay the payments on them until then).  Basically, this will allow the Social Security system to survive until 2040, by using our revenue to pay for the Baby Boomer’s retirement, and it will serve as an incentive for Gen Y to go back to school and get as educated as possible for two reasons:  1)  The Government will foot the bill.  2)  We will need the education to make enough money to fund our own retirement without government handouts.

Under this plan, the retirement contribution limits will also be removed.  This will allow us to take advantage of tax-free or tax-deferred investments in a major way so that we can fund our own retirement in the future.  For example, today you might only be able to put $5,000/year into a tax-free Roth IRA (Retirement account) and you cannot contribute once you make a significant income.  By eliminating both of those limits, you will be able to save into a tax-free retirement account for your entire life, which will make funding your own retirement much easier, and will be much cheaper for the government than it would be to keep social security alive.

What Are We Asking For?

1)      Eliminate all Social Security taxes after 2040.  Eliminate Social Security benefits for anyone born after January 1st, 1980. 

2)      Immediately remove income limits on the Social Security taxes – High-Income people should continue to pay Social Security tax on their entire income just like the rest of us.

3)      Move the retirement age up to 69 by 2030 – We are already moving the retirement age to 67 by 2022, based on the increased life expectancy, we should move the age to 69 years old.  Retirement was never meant to last 30+ years when Social Security was introduced.

4)      Immediately remove federally-mandated income and contribution limits from all tax-free and tax-deferred retirement accounts.

5)      Put in a Federal Government Student Loan waiver for anyone who will not be eligible for Social Security (Gen Y) after they have paid into the system above x-level for 10 years.

Benefits & Consequences

Benefits

1)      Gen Y will have a motivation to get advanced degrees, paid back by the government, to help them fund their own retirement.

2)      Retirement saving will go up dramatically once the contribution limits are removed, and every generation (including Gen Y) will become less dependent on the Ponzi Scheme we call Social Security.

3)      We will not see an enormous increase in taxes in order to fund Social Security indefinitely.  Gen Y will still see a poor return on our Social Security tax dollars (which is what we are giving up), but in return we will be guaranteed that these Social Security tax dollars don’t triple when legislators finally realize that they need to drastically raise taxes in order to keep the system going.

Consequences

1)      The insurance companies will immediately come out with Social Security programs for people who still want to have that type of protection

2)      The government may eventually have to come up with lighter social programs for the poverty-level Gen Y’ers who will not (or choose not) to benefit from the low-cost education this program would offer.

3)      Colleges will have to be kept in check to make sure that they don’t gouge Gen Y with higher tuition knowing that Gen Y will have a government-subsidized college education.

I am offering up this document to start a much-needed debate in this country about how to handle the Social Security crisis.  I believe that Gen Y would gladly give up their Social Security checks in exchange for education opportunities, greater retirement saving flexibility and a promise that we won’t have to pay ridiculously high taxes in the future to make sure that this poorly-constructed program continues indefinitely.  Please offer constructive comments/feedback and keep this conversation going until we have a solution.  Thank you all for caring about this country!

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