Social Security Rules

THE TAX ATTIC with Jerry Coon

July 28, 2011 // 0 Comments

Current Social Security rules reviewed The topic of Social Security constantly comes up as part of the talk in Washington these days. It gets especially feisty when they start discussing how Social Security is impacted by whether or not the debt limit is increased. Politicians, bureaucrats and pundits in favor of increasing the debt limit state that if it isn’t raised, the Social Security checks will stop. Politicians, bureaucrats and pundits in favor of not increasing the debt limit state that that’s a bunch of hooey. No one who ever wants to be re-elected would do anything to stop the process of issuing Social Security checks. The checks will go out as normal. I tend to agree with those who are not in favor of increasing the debt limit and no matter what happens, the checks will go out. Our federal government takes in approximately 200 billion dollars every month in tax revenues. According to the Social Security Administration’s website, in June 2011 they paid out 4.326 billion dollars or an average of $499.40 to a little over eight million recipients. That’s 4.326 going out and 200 coming in. Hmmm. I don’t think they will take the risk of refusing to pay out that 4.326. However, the debt-increasing merry-go-round does have to stop at some point in time and now may be as good of a time as any—14.3 trillion dollars of debt might just be good enough. We Americans like to do things in a big way. Well, this is the one time that doing it large is going to hurt us. Budget or spending reform will take into account many facets such as tax reform. Even though I don’t have any personal friends in Washington, it appears like Congress wants tax professionals like me to stay in business well into the future. I’m sure they will be providing plenty of material for future articles. If I’m not careful, I will be writing these articles until I’m as old as Roger Allen! In the meantime, I believe it’s time to review the Social Security rules as they stand right now. The 10,000-pound elephant has entered the room. I mean the baby boomers have begun applying for benefits en masse. Approximately 16,000 baby boomers per […]