Tuesday, February 22, 2005

Federal INSURANCE Contributions Act

FICA, it's that acronym that everyone sees on their paycheck. That little bit that is withheld from our income, and matched by the employer, and sent of to Washington to pay the most recent obligations of the fund.

The Right, the classic linguistic manipulators that they are, are treating this program like an investment portfolio. They are crafting the debate early, so that they can use fancy terms like Personal Accounts, and Return on Investment, yield, and interest. As is consistent with their mentality, it is about calling something what they want you to believe it is, even though that isn't even close to what it really is.

So let me shout this out to all of you so that you understand the game, and not fall for the RNC talking points of the week:


For those with an objective mind, think of the thousands of dollars you pay into health insurance, and hope you never need it. Where's the return on investment there. Think of the stack of money you pay for car insurance, and hope you never need it. Now look at the amount you pay on home owners Insurance, and have only had a few minor claims that no where near compensates you for the premiums paid.

The best Insurance policy I have right now is the money withdrawn from FICA. There is a potential return of premiums. The premiums help support the security of our society. It is more then just a retirement account, it is what helps individuals dig out of awful situations. It helps provide for families when a parent dies prematurely. It assists in providing dignity to those faced with untimely dilemmas that they could not control.

The Right is setting the stage to pander their program, without even acknowledging what the program even is. Sorry folks, ya can't fool me. The Federal INSURANCE Contributions Act withholds premiums from our paycheck, to protect society from insurable events. And the beauty of this program as it is today, is I can recoup those premiums upon retirement, at a guaranteed level . . .well, at least that is how it works now . . .


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