Friday, September 25, 2009

Michael Moore: How to keep social security solvent until 2087 (it's simple!); also, "dead peasant" life insurance

Michael Moore appeared on ABC’s “The View” today, and pointed out a very simple fact about social security. The first $110000 (approximately) is subject to a flat FICA social security tax (self-employed pay more out of their own pockets). Moore says that if all income (for the rich) was taxed at the same rate, the Social Security trust fund would last until 2087! (Refer to Sloan's predictions of quick catastrophe on previous posts.)

Moore is promoting his movie “Capitalism: A Love Story” and yes, he is decrying “socialism for Wall Street”.

I’ve always wondered this. Even back in the mid 1970s, when I worked in New York City for NBC as a computer programmer, I looked forward to the day, usually in September, when I had paid the FICA taxes for the year and my paycheck represented a “raise” for the rest of the year.

He talked about "dead peasant" life insurance policies, where companies make themselves beneficiaries of life insurance policies that the living people don't know about. Here's an article back from 2003 on the "dead peasant" problem.

Moore, himself well-off but viewed by many people as representative of the extreme left, has criticized our "survival of the fittest" mindset and yet one of his film companies is named "Dog Eat Dog".

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