Texas Gov. Rick Perry defended his position that Social Security is like a Ponzi Scheme in his first appearance at the GOP Debate held at the Ronald Reagan Presidential Library. The media has labeled this position from pure lunacy equating Social Security to a criminal activity to courage for speaking the truth. So is it a Ponzi Scheme?
If you would like to know the history of a Ponzi Scheme a simple Google search will do. The briefest description of a Ponzi Scheme is where returns for existing investors are paid from funds of new investors and there is the ever increasing need for new investors to keep the scheme going. A Ponzi Scheme is investment fraud. Social Security is not investment fraud. However, when Social Security was enacted in the 1930’s there were 140 taxpaying citizens for every person receiving a Social Security check. Today there are 3 taxpaying citizens for every person receiving a Social Security check. It has been widely reported that the Social Security Trust Fund will be exhausted by 2036. This is exactly what happens to Ponzi Schemes. Oh and if you didn’t already know it, the Federal Government borrows from the Social Security Trust Fund to meet current obligations. I leave it to you to decide if that’s a criminal activity.
My point is that to save Social Security either benefits will have to be reduced (not a good political move), increase in taxpayers paying into the system (not on the foreseeable horizon give the 9.1% unemployment rate) or raise taxes.
If you’re a business owner or self-employed professional you have choices and don’t need to subject yourself or your family to this political lunacy. There are proactive tax strategies that will free you from paying higher payroll taxes and free-up other tax dollars you’re paying.
So, if you’re self-employed or a business owner, give us a call to analyze your current tax situation and we’ll provide you with a proactive plan so your taxes won’t go up.
Give us a call at 800-503-0699.
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