When I was 18 years old, on the first day of my first job as a waitress, I was cornered by four waitresses and told that they only declared half their tips, and in a threatening way, informed me that I must do the same or risk getting them in trouble with the government. As a naive young woman, I didn't know about FICA or even consider my future Social Security Benefits. I am confident that most tip earners are in economic survival mode and do not think about the future, even if they think they might live to old age.
That's where the government comes in to "promote the general welfare" and look out for the citizens. We must elect public servants who are not selfish like Trump and his ilk to ensure we don't end up with legislation that ultimately harms tip workers while boosting the money piles of the already wealthy.
By the way, we saw Thom at the book signing and heard him speak about his new book, why it was decided to reduce the size of the middle class, how they did it, and what we must do to grow the middle class again. I wanted to shake Thom's hand and have him sign my copy, but he was swamped by folks as eager as I to meet him, and we needed to find our hotel, so we left. I wonder if a signed copy of "The Hidden History of the American Dream: The Demise of the Middle Class and How to Rescue Our Future" will be valuable someday. Thanks for all you do, Thom, to help create a better future for us and our descendants. Also, I met some great ladies who are doing their best to get Harris elected.
Really rich people want "appreciation of assets" not increases in income. I don't know this for a fact, but the wealthiest people where I live pay virtually no taxes. They hold assets and borrow against them. There is a good argument that taxation of consumption, is the only way to make them pay a fair share.
Taxation of consumption is a sales tax. It is said that a sales tax is regressive as it falls hardest on those with the least income or wages. Some states like Washington, exempt food from the sale tax, However if you can buy an expensive appliance, a vehicle, a boat, a plane then you should pay the sales tax.
If you make enough money, have a rental or your property shielded by an LLC, you can itemize your taxes and deduct the sales tax.
The way the rich and powerful get away with everything is by putting all of their wealth into a trust or foundation, and living off the trust/foundation.
Back in the 1980's while doing Masters research, if found that the Rockefellers had a well maintained mansion in Florida, full staff that kept it ready for any member of the family, should they decide to show up, including a full wardrobe., the staff probably lived in the mansion as well. The Mansion belonged to the foundation, which paid it's bills and taxes.
We think of wealth in terms of ownership, but the truly wealthy think in terms of control.
The wealthiest man on the planet in the 1960's was Mao Tse Tung, he received an allowance of $300 a month.what made him wealthy was that he commanded the full resources of China.
What need have you for money, when you can snap your fingers or whisper a desire and your needs are met. Want to fly from NY to LA, without bothering with the TSA, done, on the Trump organization 737, your name is no on the title, but the plane is kept fueled,inflighted and ready for your beck and call.
Inflighting is making sure the plane is fueled, service, constantly inspected and ready for take off on a moments notice.. it cost money.
William, when I delivered in the Portland area, I was paying about 9% state sales tax because of being childless. When I moved across the river to Vancouver Washington, I saved about 300 to 400 dollars a month where everyone was paying the same sales tax! The people with children still got their Federal income tax deductions and their earned income tax credits though. I was paying about 43% of my income into taxes if you include social security and Medicare and federal income tax, and property tax...
Now I read where the billionaires, some of them can get away without paying any taxes and the average amount they pay is about 6%? This is why they want a dictatorship in my opinion,so they don't have to pay their fair share, which I think is about 43%! Even with a maximum income of about $500,000 a year.
Being an FDR Democrat, I support at least a 90% tax on the rich if there is no maximum income! Even then a few of them would still conspire to buy the government! So I prefer a maximum income to keep them from having enough money to buy the government!
Washington State does not have an income tax, but it has a 6.5% sales tax, and each county and municipality adds their own. In my county the maximum combined sales tax is 8.4%.
There has been a push for years to get rid of the sales tax and have an income tax, and CPA's are behind the push, Of course, it means jobs, income.
But anyone who has lived anytime on earth, knows that taxes never go away or are repealed.
What will happen is that we will have both an income tax and a sales tax. The people who live in Vancouver, WA or near the border, go shopping in Portland, however if you buy a car in Oregon or anywhere else, the moment you register it in Washington they will charge you an excise tax equivalent to a sales tax.
And the WSP looks for Oregon plates. I bought a car overseas,picked it up in Charleston, SC but when I registered it in Washington I had to pay a tax.
My favorite is Thiel, who put a low value on Paypal stock, put it in a Roth IRA and is therefore free from taxation while the value has risen to billions.
Rockefellers were the largest or second largest landowners (maybe behind the Catholic Church) in all of Latin America. Here, Howard Hughes was the largest landowner. We used to visit Jekyll Island GA,
The consumption tax is not a new idea. The U.S. had a consumption tax for much of its history before replacing it with an income tax. The Bush administration backed a version of this, although the proposal was defeated. The proposal called for the United States to shift from a mainly progressive income tax system to a national tax system that uses consumption taxes exclusively.
My question, as usual, is why not both? Or for that matter why not inheritance, VAT, others in combination.
I also suggested that the US develop endowments for stuff like Social Security and Medicare? Once upon a time, I suggested that donations can help fund public trust funds.
Here's an ABA article published for probate lawyers
December 01, 2011 FINANCIAL PLANNING
Social Security—Maybe Charity Should Begin at Home
By Daniel F. Solomon
For most of its history, Social Security was a terrific bargain: our parents and grandparents most probably received significantly more benefits than they paid into the Social Security Trust Fund. The trust fund comprises the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds (OASDI, collectively).
In most cases, because our family units could rely on these benefits, they were able to enjoy enough financial independence to send people like us to school so that we could become lawyers—productive and, in some cases, wealthy, members of society. For 75 years, the Social Security Trust Fund has helped enable American soci- ety to achieve far beyond the aspirations of its founders, ultimately providing more than subsistence to retirees by also protecting widows, orphans, and disabled people. The dignity provided to needy beneficiaries surely far outweighs the economic value of the funds.
However, financial experts have long predicted a future insolvency of the funds. A majority of Americans have invested in the funds, recognize their social utility, and do not want to burden their heirs. Although there have been legislative attempts to “fix” the system, there is no consensus how to do it. The Congressional Research Service reported:
For example, for workers who earned average wages and retired in 1980 at age 65, it took 2.8 years to recover the value of the retirement portion of the combined employee and employer shares of their Social Security taxes plus interest. For their counterparts who retired at age 65 in 2002, it will take 16.9 years. For those retiring in 2020, it will take 20.9 years.
Geoffrey Kollmann and Dawn Nuschler, “Social Security Reform” (October 2002).
The National Commission on Social Security Reform (informally known as the “Greenspan Commission” after its chairman) was appointed by the Congress and President Ronald Reagan in 1981 in response to a short-term financing crisis that Social Security faced at that time. Estimates were that the OASI Trust Fund would run out of money possibly as early as August 1983. Congress rendered a compromise that extended the retirement age from 65 to 67, through a deal that raised payroll taxes and trimmed benefits enough to keep Social Security solvent. See Jackie Calmes, “Political Memo: The Bipartisan Panel: Did It Really Work?” New York Times, January 18, 2010. However, the legislation addressed only the immediate problem and did not address the long-term viability of the fund. See also Rudolph G. Penner, “The Greenspan Commission and the Social Security Reforms of 1983,” in Triumphs and Tragedies of the Modern Presidency, David Abshire, Editor. Washington: Center for the Study of the Presidency, pp. 129–31.
The George W. Bush administration commission deliberated on the issue and then called for a transition to a combination of a government-funded program and personal accounts (“individual” or “private accounts”) through partial privatization of the system.
President Barack Obama reportedly strongly opposes privatization or raising the retirement age but supports raising the cap on the payroll tax ($106,800 in 2009) to help fund the program. He has appointed a National Commission on Fiscal Responsibility and Reform, which is to report and offer another fix.
Current estimates predict that payroll taxes will only cover 78% of the scheduled payout amounts after 2037. This declines to 75% by 2084. 2010 OASDI Trust- ees Report, Figure II.D2, www.ssa.gov/OACT/TR/2010/ trTOC.html.
Although the congressional plan was to ensure solvency through Federal Insurance Contributions Act (FICA) tax, there is a private means to help: to also consider the humanitarian and charitable nature of the Social Security Administration (SSA), which has been possible since a legislative fix in 1972. Before then, bequests naming Social Security or a trust fund as a beneficiary could not be accepted, which caused problems in administration of some estates. Money gifts or bequests may be accepted for deposit by the managing trustee of the OASI and DI funds. Section 170(c)(l) of the Internal Revenue Code lists the U.S. government among the educational or charitable organizations to which donations are acceptable. Gifts must be unconditional, except that the donor may designate to which fund the gift should be donated. If no fund is designated, the gift is credited to the OASI Trust Fund.
However, SSA has not publicized its charitable persona. Although the agency has received some gifts and bequests, they have been insignificant and not given consideration in a possible fix. The concept has been so unimportant to the experts that the Annual Statistical Supplement to the Social Security Bulletin does not specify how much the administration has received in gifts and bequests. Total revenue from gifts to the trust funds has been quite small. From 1974 to 1979 the most received in any one year was $91,949.88. During that period, the average annual amount was only $39,847. In 1980, almost two-thirds of the gifts were less than $100. The median gift size was $50. One person, for example, donated $13.11. She arrived at that amount by applying 5.85% (the employee tax rate then in effect) to her benefit amount and donated it to help “‘shore up’ the sagging, dwindling Social Security fund.” However, the 2010 Social Security Trustees Report lists them as about $98,000 (www.ssa.gov/OACT/TR/2010/III_ cyoper.html#2). Compared to many other charities, this is a paltry amount.
Apparently, SSA has never done a feasibility study nor marketing research to determine how an aggressive campaign could raise funds to support Social Security, or how gifts and bequests could reduce the current estimates of impending doom. According to some estimates total deductions taken for all charities next year would be $413.5 billion. Estimates for fiscal year 2011 are that SSA will spend $730 billion. That amount is already covered through “contributions” (taxes), but it is reasonable that charitable contributions to the trust fund could significantly lessen taxpayer exposure for impending doom, if not return the fund to solvency.
As lawyers, we have the capacity to remind our families, our clients, and the public at large that there is a way to contribute to help endow future generations in the pursuit of the same kind of social stability that Social Security provided to our parents and grandparents.
"The National Commission on Fiscal Responsibility and Reform (often called Simpson-Bowles or Bowles-Simpson from the names of co-chairs Alan Simpson and Erskine Bowles; or NCFRR) is a Presidential Commission created in 2010 by President Barack Obama to identify 'policies to improve the fiscal situation in the medium .
Failed because or Republican and big money obstruction, It failed in the house 382-38, the following article from WAPO has 11 reasons why it failed, from the progressive pointof view it was because it raised the retirement age to 68 then 69, and it reformulated COLA adjustments for a lower payout.
I once was placed next to Simpson at a dinner. He had absolutely no idea that once the apex of baby boomers was reached, the curve would turn downward. Turned out he didn't give a shit.
I am sorry to report that many people from my generation were sold BS that there would be no trust funds left when we retired. Most died after receiving full benefits for the rest of their natural lives. The folklore was that the trillions in the trust funds can be released into the markets....
And therein is the real reason for the social security scare. The likes of Peter Thiel, Jamie Dimon, Wall Street are aching to get their hands on not only the social security trust fund, but our monthly FICA payments, so they can gin the stock market and also rake in commissions.
William, it sounds like Putin learned from Mao. And so did the rest of the fascists! The billionaires are killing the goose that lays the golden eggs! Our government employees are being bribed to rob the safe!
Gloria if you check the news you will see that the Southwest, Phoenix in particular is just about reached a 20-day in a row record high temperatures for all time on those dates. It is supposed to dip under 90° where I live Sunday.
Tip taxation is a difficult subject, but tips are income and should be taxed. When I transitioned from front of house (tipped) to back of house (salary) I earned less and paid a higher percentage in taxes. I knew nothing of how SS worked. Even when I was still a waiter, I declared 15% of my sales compared to my colleagues declaring 2-5% because it was the right thing to do. I get that it’s attractive to many service workers to think they won’t have to pay taxes on their tips, but it will ultimately harm them and it will harm society as a whole. Raise the poverty level and minimum wages, repeal the “tipped minimum,” and raise the top tax bracket to pay for it all.
Social media is likely a big influence on this election. Everyone is welcome to re-post the following, or make it better and post:
Democracy is on the Line
Democracy is on the line here and worldwide. At the heart of a democracy is having fair and free elections in which the citizens of voting age determine the leaders. If trying to overthrow an election is allowed, there are no other laws that are safe from being disregarded or misused. Once the rule of law has broken down it’s very hard to get back. Free elections are hard to get back once a dictatorship is established.
Some people may think the dictator is on their side. No, the dictator is for the dictator. As the saying goes, absolute power corrupts absolutely. Trump wants to be a dictator and he has the media, the Supreme Court and big money supporting him. He openly admires dictators like Hungarian Viktor Orban and called Putin’s invasion genus. Trump has the will and the skill to become a dictator.
Trump is saying he won’t supply Ukraine against Putin’s invasion. With a Trump win, Russia could defeat Ukraine. This might encourage more land grabs, more wars and more dictators. If the leader of the free world, the USA, becomes a dictatorship what will the world become and what will the USA become?
Let’s vote in Harris and retain our democracy. We can supply Ukraine, maybe they can push Russia out or if Ukraine wants to negotiate with Russia, they would be doing so from a stronger position. In a nuclear world, the stakes are high. But the stakes are higher with more dictatorships and higher still without a free USA. Democracy here and democracies worldwide are on the line, please vote for Harris.
To all comments above. MAGA, in part, means a return to the Gilded Age for the oligarchy of greed. So why are the so-called Christian Nationalists in cohoots with the oligarchs?
Thank you Doug for this: "Trump is saying he won’t supply Ukraine against Putin’s invasion. With a Trump win, Russia could defeat Ukraine. This might encourage more land grabs, more wars and more dictators. If the leader of the free world, the USA, becomes a dictatorship what will the world become and what will the USA become?"
a point purposefully overlooked by the surrender monkey, piss your pants at the word nuke, brigade.
was at a little greasy spoon joint where I made $1.25 a hour and never got a tip, because no one told me that the money left on the table was for me? so I give it to the bartender/I cashier I was 15years old . Kamala Harris is talking about that kind of Tip. What trump proposed is for the Top ten percent, like himself and his buddies salaries. Great to have you back Thom, see you soon on FStv. Will reStack ASAP 💯👍🇺🇸💙🌊
When Trump came out with his tax-free tips after SCROTUS redefined bribes as tips, it was pretty clear where he was headed. What a rip-off artist. Grifter doesn't even begin.
Always interesting how the GOP is able to make simple things actually to be well thought out strategies to give to the billionaire class instead of the daily worker they all want us to think they are talking about. It just so happens that worker tips in service jobs become tax free bonuses for the wealthy. Rigging the system to favor the advantaged is the path of the GOP. Sadly, the Dems lack the basic messaging skills to put all this huge supply of fakery. The lack of a simple 3 or 4 economic base message that if repeated by the entire party would make the low information Dem base voters come out and win the election handedly. The 20 or so items on the Dem website simple will not be understood no matter how good all those items will be. Might as well not even exist as nobody will know of them which was the cause of the loss of the house in 2022. So bloody predictable. It seems God will have to provide to save the Dem party from its obvious stupidity once again. God save the nation.
Of course those corporate moguls deserve tax free tips! It's a lot of work to ruin a successful company!!! I'm looking at you Boeing. And surely trump deserved tips when he bankrupted 3 casinos!!! How do you bankrupt a business where the house ALWAYS WINS? Do you know the "genius" it takes to do that???
So I guess all that crap that Alito, Thomas & Roberts got is now classified as tips. So even if we prove they were bribes they handily changed the meaning just in the nick of time to show that they don't need any ethics rules! They are the Supremes afterall!!!
I think executive bonuses will also be classified as tips, along with bribing our politicians to create a poorer class and create more criminals and drug addicts and chaos!
From what I can tell 2025 and Trump's economic plan will not create new jobs, the fascist will have to get rid of as many useless eaters as possible, disabled, retired, unhealthy immigrants and citizens, criminals... The illegals that get deported will be the lucky ones.
In my humble opinion, there will be a war over Taiwan and America's citizens of useless eaters will be sent first without weapons. Following Putin's game plan in the Ukraine.
I would not mind if the intelligent ruled the world but unfortunately the New World order billionaires don't quite qualify as intelligent. Destroying the Earth's environment is not intelligent, supporting unregulated greed is not intelligent, starving millions of people a year is not human, opposing birth control and abortion is not humane... The billionaires may believe that they are the chosen ones, but they're only lying to themselves.
When I was 18 years old, on the first day of my first job as a waitress, I was cornered by four waitresses and told that they only declared half their tips, and in a threatening way, informed me that I must do the same or risk getting them in trouble with the government. As a naive young woman, I didn't know about FICA or even consider my future Social Security Benefits. I am confident that most tip earners are in economic survival mode and do not think about the future, even if they think they might live to old age.
That's where the government comes in to "promote the general welfare" and look out for the citizens. We must elect public servants who are not selfish like Trump and his ilk to ensure we don't end up with legislation that ultimately harms tip workers while boosting the money piles of the already wealthy.
By the way, we saw Thom at the book signing and heard him speak about his new book, why it was decided to reduce the size of the middle class, how they did it, and what we must do to grow the middle class again. I wanted to shake Thom's hand and have him sign my copy, but he was swamped by folks as eager as I to meet him, and we needed to find our hotel, so we left. I wonder if a signed copy of "The Hidden History of the American Dream: The Demise of the Middle Class and How to Rescue Our Future" will be valuable someday. Thanks for all you do, Thom, to help create a better future for us and our descendants. Also, I met some great ladies who are doing their best to get Harris elected.
Not taxing tips and bribes means no reporting. How convenient for the grifter class!
Just an election ploy. Tax cuts = reductions in wages.
Just watched Thom on Politicsgirl. What happened to the American Dream? A conversation with Thom Hartmann https://www.youtube.com/watch?v=RLANqF-Qw6U
Really rich people want "appreciation of assets" not increases in income. I don't know this for a fact, but the wealthiest people where I live pay virtually no taxes. They hold assets and borrow against them. There is a good argument that taxation of consumption, is the only way to make them pay a fair share.
Taxation of consumption is a sales tax. It is said that a sales tax is regressive as it falls hardest on those with the least income or wages. Some states like Washington, exempt food from the sale tax, However if you can buy an expensive appliance, a vehicle, a boat, a plane then you should pay the sales tax.
If you make enough money, have a rental or your property shielded by an LLC, you can itemize your taxes and deduct the sales tax.
The way the rich and powerful get away with everything is by putting all of their wealth into a trust or foundation, and living off the trust/foundation.
Back in the 1980's while doing Masters research, if found that the Rockefellers had a well maintained mansion in Florida, full staff that kept it ready for any member of the family, should they decide to show up, including a full wardrobe., the staff probably lived in the mansion as well. The Mansion belonged to the foundation, which paid it's bills and taxes.
We think of wealth in terms of ownership, but the truly wealthy think in terms of control.
The wealthiest man on the planet in the 1960's was Mao Tse Tung, he received an allowance of $300 a month.what made him wealthy was that he commanded the full resources of China.
What need have you for money, when you can snap your fingers or whisper a desire and your needs are met. Want to fly from NY to LA, without bothering with the TSA, done, on the Trump organization 737, your name is no on the title, but the plane is kept fueled,inflighted and ready for your beck and call.
Inflighting is making sure the plane is fueled, service, constantly inspected and ready for take off on a moments notice.. it cost money.
William, when I delivered in the Portland area, I was paying about 9% state sales tax because of being childless. When I moved across the river to Vancouver Washington, I saved about 300 to 400 dollars a month where everyone was paying the same sales tax! The people with children still got their Federal income tax deductions and their earned income tax credits though. I was paying about 43% of my income into taxes if you include social security and Medicare and federal income tax, and property tax...
Now I read where the billionaires, some of them can get away without paying any taxes and the average amount they pay is about 6%? This is why they want a dictatorship in my opinion,so they don't have to pay their fair share, which I think is about 43%! Even with a maximum income of about $500,000 a year.
Being an FDR Democrat, I support at least a 90% tax on the rich if there is no maximum income! Even then a few of them would still conspire to buy the government! So I prefer a maximum income to keep them from having enough money to buy the government!
Washington State does not have an income tax, but it has a 6.5% sales tax, and each county and municipality adds their own. In my county the maximum combined sales tax is 8.4%.
There has been a push for years to get rid of the sales tax and have an income tax, and CPA's are behind the push, Of course, it means jobs, income.
But anyone who has lived anytime on earth, knows that taxes never go away or are repealed.
What will happen is that we will have both an income tax and a sales tax. The people who live in Vancouver, WA or near the border, go shopping in Portland, however if you buy a car in Oregon or anywhere else, the moment you register it in Washington they will charge you an excise tax equivalent to a sales tax.
And the WSP looks for Oregon plates. I bought a car overseas,picked it up in Charleston, SC but when I registered it in Washington I had to pay a tax.
Sorry, make that state income tax not sales tax for Oregon, my bad as usual!
Not just land.
My favorite is Thiel, who put a low value on Paypal stock, put it in a Roth IRA and is therefore free from taxation while the value has risen to billions.
Rockefellers were the largest or second largest landowners (maybe behind the Catholic Church) in all of Latin America. Here, Howard Hughes was the largest landowner. We used to visit Jekyll Island GA,
https://en.wikipedia.org/wiki/Jekyll_Island_Club
https://en.wikipedia.org/wiki/Rockefeller_Cottage
The consumption tax is not a new idea. The U.S. had a consumption tax for much of its history before replacing it with an income tax. The Bush administration backed a version of this, although the proposal was defeated. The proposal called for the United States to shift from a mainly progressive income tax system to a national tax system that uses consumption taxes exclusively.
My question, as usual, is why not both? Or for that matter why not inheritance, VAT, others in combination.
I also suggested that the US develop endowments for stuff like Social Security and Medicare? Once upon a time, I suggested that donations can help fund public trust funds.
Here's an ABA article published for probate lawyers
December 01, 2011 FINANCIAL PLANNING
Social Security—Maybe Charity Should Begin at Home
By Daniel F. Solomon
For most of its history, Social Security was a terrific bargain: our parents and grandparents most probably received significantly more benefits than they paid into the Social Security Trust Fund. The trust fund comprises the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds (OASDI, collectively).
In most cases, because our family units could rely on these benefits, they were able to enjoy enough financial independence to send people like us to school so that we could become lawyers—productive and, in some cases, wealthy, members of society. For 75 years, the Social Security Trust Fund has helped enable American soci- ety to achieve far beyond the aspirations of its founders, ultimately providing more than subsistence to retirees by also protecting widows, orphans, and disabled people. The dignity provided to needy beneficiaries surely far outweighs the economic value of the funds.
However, financial experts have long predicted a future insolvency of the funds. A majority of Americans have invested in the funds, recognize their social utility, and do not want to burden their heirs. Although there have been legislative attempts to “fix” the system, there is no consensus how to do it. The Congressional Research Service reported:
For example, for workers who earned average wages and retired in 1980 at age 65, it took 2.8 years to recover the value of the retirement portion of the combined employee and employer shares of their Social Security taxes plus interest. For their counterparts who retired at age 65 in 2002, it will take 16.9 years. For those retiring in 2020, it will take 20.9 years.
Geoffrey Kollmann and Dawn Nuschler, “Social Security Reform” (October 2002).
The National Commission on Social Security Reform (informally known as the “Greenspan Commission” after its chairman) was appointed by the Congress and President Ronald Reagan in 1981 in response to a short-term financing crisis that Social Security faced at that time. Estimates were that the OASI Trust Fund would run out of money possibly as early as August 1983. Congress rendered a compromise that extended the retirement age from 65 to 67, through a deal that raised payroll taxes and trimmed benefits enough to keep Social Security solvent. See Jackie Calmes, “Political Memo: The Bipartisan Panel: Did It Really Work?” New York Times, January 18, 2010. However, the legislation addressed only the immediate problem and did not address the long-term viability of the fund. See also Rudolph G. Penner, “The Greenspan Commission and the Social Security Reforms of 1983,” in Triumphs and Tragedies of the Modern Presidency, David Abshire, Editor. Washington: Center for the Study of the Presidency, pp. 129–31.
The George W. Bush administration commission deliberated on the issue and then called for a transition to a combination of a government-funded program and personal accounts (“individual” or “private accounts”) through partial privatization of the system.
President Barack Obama reportedly strongly opposes privatization or raising the retirement age but supports raising the cap on the payroll tax ($106,800 in 2009) to help fund the program. He has appointed a National Commission on Fiscal Responsibility and Reform, which is to report and offer another fix.
Current estimates predict that payroll taxes will only cover 78% of the scheduled payout amounts after 2037. This declines to 75% by 2084. 2010 OASDI Trust- ees Report, Figure II.D2, www.ssa.gov/OACT/TR/2010/ trTOC.html.
Although the congressional plan was to ensure solvency through Federal Insurance Contributions Act (FICA) tax, there is a private means to help: to also consider the humanitarian and charitable nature of the Social Security Administration (SSA), which has been possible since a legislative fix in 1972. Before then, bequests naming Social Security or a trust fund as a beneficiary could not be accepted, which caused problems in administration of some estates. Money gifts or bequests may be accepted for deposit by the managing trustee of the OASI and DI funds. Section 170(c)(l) of the Internal Revenue Code lists the U.S. government among the educational or charitable organizations to which donations are acceptable. Gifts must be unconditional, except that the donor may designate to which fund the gift should be donated. If no fund is designated, the gift is credited to the OASI Trust Fund.
However, SSA has not publicized its charitable persona. Although the agency has received some gifts and bequests, they have been insignificant and not given consideration in a possible fix. The concept has been so unimportant to the experts that the Annual Statistical Supplement to the Social Security Bulletin does not specify how much the administration has received in gifts and bequests. Total revenue from gifts to the trust funds has been quite small. From 1974 to 1979 the most received in any one year was $91,949.88. During that period, the average annual amount was only $39,847. In 1980, almost two-thirds of the gifts were less than $100. The median gift size was $50. One person, for example, donated $13.11. She arrived at that amount by applying 5.85% (the employee tax rate then in effect) to her benefit amount and donated it to help “‘shore up’ the sagging, dwindling Social Security fund.” However, the 2010 Social Security Trustees Report lists them as about $98,000 (www.ssa.gov/OACT/TR/2010/III_ cyoper.html#2). Compared to many other charities, this is a paltry amount.
Apparently, SSA has never done a feasibility study nor marketing research to determine how an aggressive campaign could raise funds to support Social Security, or how gifts and bequests could reduce the current estimates of impending doom. According to some estimates total deductions taken for all charities next year would be $413.5 billion. Estimates for fiscal year 2011 are that SSA will spend $730 billion. That amount is already covered through “contributions” (taxes), but it is reasonable that charitable contributions to the trust fund could significantly lessen taxpayer exposure for impending doom, if not return the fund to solvency.
As lawyers, we have the capacity to remind our families, our clients, and the public at large that there is a way to contribute to help endow future generations in the pursuit of the same kind of social stability that Social Security provided to our parents and grandparents.
"The National Commission on Fiscal Responsibility and Reform (often called Simpson-Bowles or Bowles-Simpson from the names of co-chairs Alan Simpson and Erskine Bowles; or NCFRR) is a Presidential Commission created in 2010 by President Barack Obama to identify 'policies to improve the fiscal situation in the medium .
Failed because or Republican and big money obstruction, It failed in the house 382-38, the following article from WAPO has 11 reasons why it failed, from the progressive pointof view it was because it raised the retirement age to 68 then 69, and it reformulated COLA adjustments for a lower payout.
https://www.washingtonpost.com/news/wonk/wp/2012/12/04/11-shocking-true-facts-about-simpson-bowles/
I once was placed next to Simpson at a dinner. He had absolutely no idea that once the apex of baby boomers was reached, the curve would turn downward. Turned out he didn't give a shit.
I am sorry to report that many people from my generation were sold BS that there would be no trust funds left when we retired. Most died after receiving full benefits for the rest of their natural lives. The folklore was that the trillions in the trust funds can be released into the markets....
And therein is the real reason for the social security scare. The likes of Peter Thiel, Jamie Dimon, Wall Street are aching to get their hands on not only the social security trust fund, but our monthly FICA payments, so they can gin the stock market and also rake in commissions.
William, it sounds like Putin learned from Mao. And so did the rest of the fascists! The billionaires are killing the goose that lays the golden eggs! Our government employees are being bribed to rob the safe!
Thanks for the link. We sat on the deck and listened to it on one of the last warm days this year
Gloria if you check the news you will see that the Southwest, Phoenix in particular is just about reached a 20-day in a row record high temperatures for all time on those dates. It is supposed to dip under 90° where I live Sunday.
Tax-free tip should have a limit. Maybe $50,000 a year, something like that. Even high-end waiters make surprisingly high amounts in tips.
Tip taxation is a difficult subject, but tips are income and should be taxed. When I transitioned from front of house (tipped) to back of house (salary) I earned less and paid a higher percentage in taxes. I knew nothing of how SS worked. Even when I was still a waiter, I declared 15% of my sales compared to my colleagues declaring 2-5% because it was the right thing to do. I get that it’s attractive to many service workers to think they won’t have to pay taxes on their tips, but it will ultimately harm them and it will harm society as a whole. Raise the poverty level and minimum wages, repeal the “tipped minimum,” and raise the top tax bracket to pay for it all.
Social media is likely a big influence on this election. Everyone is welcome to re-post the following, or make it better and post:
Democracy is on the Line
Democracy is on the line here and worldwide. At the heart of a democracy is having fair and free elections in which the citizens of voting age determine the leaders. If trying to overthrow an election is allowed, there are no other laws that are safe from being disregarded or misused. Once the rule of law has broken down it’s very hard to get back. Free elections are hard to get back once a dictatorship is established.
Some people may think the dictator is on their side. No, the dictator is for the dictator. As the saying goes, absolute power corrupts absolutely. Trump wants to be a dictator and he has the media, the Supreme Court and big money supporting him. He openly admires dictators like Hungarian Viktor Orban and called Putin’s invasion genus. Trump has the will and the skill to become a dictator.
Trump is saying he won’t supply Ukraine against Putin’s invasion. With a Trump win, Russia could defeat Ukraine. This might encourage more land grabs, more wars and more dictators. If the leader of the free world, the USA, becomes a dictatorship what will the world become and what will the USA become?
Let’s vote in Harris and retain our democracy. We can supply Ukraine, maybe they can push Russia out or if Ukraine wants to negotiate with Russia, they would be doing so from a stronger position. In a nuclear world, the stakes are high. But the stakes are higher with more dictatorships and higher still without a free USA. Democracy here and democracies worldwide are on the line, please vote for Harris.
To all comments above. MAGA, in part, means a return to the Gilded Age for the oligarchy of greed. So why are the so-called Christian Nationalists in cohoots with the oligarchs?
Dear Ran,
I think you’ll get an
N answer by reading Morgan Sinclair,PHd
Fr
Thank you Doug for this: "Trump is saying he won’t supply Ukraine against Putin’s invasion. With a Trump win, Russia could defeat Ukraine. This might encourage more land grabs, more wars and more dictators. If the leader of the free world, the USA, becomes a dictatorship what will the world become and what will the USA become?"
a point purposefully overlooked by the surrender monkey, piss your pants at the word nuke, brigade.
Well said, Doug.
I was a waitress back in 1969.It
was at a little greasy spoon joint where I made $1.25 a hour and never got a tip, because no one told me that the money left on the table was for me? so I give it to the bartender/I cashier I was 15years old . Kamala Harris is talking about that kind of Tip. What trump proposed is for the Top ten percent, like himself and his buddies salaries. Great to have you back Thom, see you soon on FStv. Will reStack ASAP 💯👍🇺🇸💙🌊
When Trump came out with his tax-free tips after SCROTUS redefined bribes as tips, it was pretty clear where he was headed. What a rip-off artist. Grifter doesn't even begin.
Always interesting how the GOP is able to make simple things actually to be well thought out strategies to give to the billionaire class instead of the daily worker they all want us to think they are talking about. It just so happens that worker tips in service jobs become tax free bonuses for the wealthy. Rigging the system to favor the advantaged is the path of the GOP. Sadly, the Dems lack the basic messaging skills to put all this huge supply of fakery. The lack of a simple 3 or 4 economic base message that if repeated by the entire party would make the low information Dem base voters come out and win the election handedly. The 20 or so items on the Dem website simple will not be understood no matter how good all those items will be. Might as well not even exist as nobody will know of them which was the cause of the loss of the house in 2022. So bloody predictable. It seems God will have to provide to save the Dem party from its obvious stupidity once again. God save the nation.
Thanks for revealing another dastardly scheme in historical context while contrasting it with a public-spirited proposal. Whoosh!
Of course those corporate moguls deserve tax free tips! It's a lot of work to ruin a successful company!!! I'm looking at you Boeing. And surely trump deserved tips when he bankrupted 3 casinos!!! How do you bankrupt a business where the house ALWAYS WINS? Do you know the "genius" it takes to do that???
So I guess all that crap that Alito, Thomas & Roberts got is now classified as tips. So even if we prove they were bribes they handily changed the meaning just in the nick of time to show that they don't need any ethics rules! They are the Supremes afterall!!!
Taxing tips and social security is yet another reason Reagan was such a terrible president.
I think executive bonuses will also be classified as tips, along with bribing our politicians to create a poorer class and create more criminals and drug addicts and chaos!
From what I can tell 2025 and Trump's economic plan will not create new jobs, the fascist will have to get rid of as many useless eaters as possible, disabled, retired, unhealthy immigrants and citizens, criminals... The illegals that get deported will be the lucky ones.
In my humble opinion, there will be a war over Taiwan and America's citizens of useless eaters will be sent first without weapons. Following Putin's game plan in the Ukraine.
I would not mind if the intelligent ruled the world but unfortunately the New World order billionaires don't quite qualify as intelligent. Destroying the Earth's environment is not intelligent, supporting unregulated greed is not intelligent, starving millions of people a year is not human, opposing birth control and abortion is not humane... The billionaires may believe that they are the chosen ones, but they're only lying to themselves.
Read Morgan Sinclair,PHD Oct 9th substack. Many answers .