Gov revenue increases after taxes are lowered. Left-leaning economists do not like that truth, but when people have more money, they spend it, save it, or give it away*. All 3 help the economy and create further revenue, which is taxed again. Lowering taxes provides incentive to invest or grow income as well. Then gov revenues go up, every time serious tax reduction is tried.
Let me know if you agree with this: it isn't JUST "bigger checks". It is keeping my money ... what I earned through my hard work, patience and perseverance.
* when people are more generous, the NEED for social programs go down. Politicians from the Uniparty do not like that, because they're addicted to OPM.
The last point ... I will agree with part of that completely. (ha) I think most Americans make shi!tty decisions with their money BUUUTTT they make better decisions for themselves than greedy Pols will make for them. If you're talking about people and their decisions vs SS, then yes I agree. Just look at Galveston.
Later, gotta run.
EDIT: I forgot ... businesses do not pay "corporate income taxes". Customers of business pay income taxes. So whoever buys something from a business is the one actually paying the corporate income tax. It is a shame how bad our economic education is today.
Hey, when it comes to social security I think most would be better off with it but that's based on age, i.e. too old to take advantage of compound interest and 2. People aren't great with money.
However, I'd be in favor of an opt out which can be used by those who are good with their money. I'd definitely opt out.
For example, at 20 if you chose to opt out, you, in theory, would be getting at least 7.5% more in your paycheck. 15% if the employer also gives ya 7.5%.
Say you're making 40k, an extra 7.5% is 3k more a year or $600,000 over 40 years assuming 7% returns. $1,200,000 if the employer matched the 7.5% as they are currently required under the payroll tax.
We can see this person being way better off not collecting social security.
On the flipside, take a someone retiring in 20 years, making 80k a year.
This person is projected to get around $2,000 a month in today's dollars or $4,000 in future dollars (inflation)
If they opted out, they'd get an extra $6,000 to $12,000 a year to invest. Invested over 20 years ay 7% they'd have $246,000 to $492,000 at retirement.
In this scenario it's not as clear on what to do. You either have $48k a year in future dollars or $492,000 at most from opting out.
Lastly, you have a third scenario which I sadly think would be most common.
People opting out in bunches but not saving a dime. These people at retirement age won't have a retirement or social security, which means work until you die or be homeless. This is something those in charge should be cognizant of.
Im in the line of thinking that we cannot claim to be a Christian nation if we don't help those that fell through the cracks, especially if it's due to the ineptitude of those at the top, those in D.C. Having the elderly work until they die is inhumane.
Added: I looked at the Galveston plan. I need to spend more time reading those papers. It looks like taxes would be higher under that plan and benefits wouldn't increase to match the cost of living. Ofc the first resource to pop up was from 2005. I'll check to see if there have been changes.
Thx for pointing me in that direction. Gonna run some errands, be back later.
