W e l c o m e !
For visitor comments click here>>
Who earns what? Who pays the taxes? (11/11/08)
According to recently-released IRS data, the highest earning 1% of of Americans made about 22% of all 2006 income (reported on tax returns) and paid about 40% of all 2006 federal income tax. Americans with earnings in the lower 50% made about 12.5% of all reportable income and paid about 3% of federal income taxes. Keep in mind that welfare distributions (including food stamps and the Earned Income Tax Credit) were not counted in this analysis, and would substantially increase the percentage of income for people with earnings in the "lower 50%." Read in Kiplinger's>>
INTERESTING NOTE: During the recent U.S. Presidential election it was claimed that taxpayers with relatively high earnings "got a break" during the 8 years of the Bush Administration. However, it should be noted that the percentage of 2006 taxes paid by the upper 1% of earners (40%) was greater than the percentage paid by the upper 1% during 2000 - the last year of the Clinton administration. (They paid about 37.5%.) In fact, in 2006 the upper 1% of earners paid more than the entire lower 95% of earners. A great analysis of these tax data, and the trends since 1980, are found on "Carpe Diem," the blog of Dr. Mark J. Perry, Professor of economics and finance at the University of Michigan.
|
For latest Iraq News Click here> Bush: "Iraqi forces will now take the lead in security operations in Anbar, with American troops moving into an overwatch role..." (9/1/08) In advance of his trip, Senator Obama says the surge has hurt American interests (7/15/08) Bush Administration claims that 15 or 18 Iraq benchmarks have been met. Democrats dispute. Read full story in USAToday (7/1/08). Maliki takes on Shiite militias The BBC reports that Prime Minister Nuri Maliki has vowed to crush all militias - both Sunni and Shia. Who won in Basra? Time magazine reports that the young and radical cleric, Moqtada al-Sadr beat Al-Maliki and the Iraqi army in Basra. But, do the facts support such a conclusion? (4/1/08) Al Qaeda steps up attacks on Sunni "Awakening Movement." U.S. military says: Despite large decrease in violence, al Qaeda continues to "have the capability, and still do have the capability to carry out ... horrific, barbaric attacks that target innocent civilians in their effort to incite sectarian tensions" (1/2/08) US military claims 80 percent reduction in Baghdad violence The US military is upbeat, but critics are still skeptical. |
Who is responsible for the crisis on Wall Street? (10/2/08)
We all know that Wall Street "greed" is responsible for the recent credit crisis. But, the federal government is also culpable. Specifically:
-
The Federal Reserve Bank Chairman, Alan Greenspan, kept interest rates too low after the 911 attack. This overheated the housing market, and encouraged institutional investors to park their assets in the now infamous "mortgage-backed securities" (MSBs). MSBs offered higher interest rates, and seemed safe, but were not because they were laced with subprime mortgages (risky loans to low-income home buyers). When housing prices declined and these subprime mortgages went into foreclosure, the market for MSBs collapsed.
-
Virtually all Congressional Democrats (and some Republicans) fought against regulatory reform of Fannie Mae and Freddie Mac. These quasi-private entities were largely responsible for the rapid growth of the subprime mortgage market. Fannie and Freddie encouraged the expansion of lending in poorer neighborhoods, at the expense of prudent lending practices.
-
The Bush Administration's Securities and Exchange Commission (SEC) was lax in regulating Wall Street lending and investment practices. SEC should have warned that many of the MSBs were laced with risky subprime loans, and were not suitable for the investors who bought them. And, SEC should have been more rigorous in enforcing the capital requirements of the investment banks.
An excellent overview of the crisis and its causes has been published on reasononline. See "The Roots of the Crisis," by Michael Flynn, Director of Government Affairs for the Reason Foundation.
Where do the presidential candidates stand on Social Security? (7/3/08)
Barack Obama has stated that he opposes a change to benefits, opposes a change in retirement age, and opposes allowing workers to opt for Private Retirement Accounts. His solution to the financial problems of the system is to tax individuals with income above the current cap of $102,000. Apparently, these people will pay additional tax without getting additional benefits, or without getting full additional benefits. (This detail is not clear.) To read Senator Obama's plan click here>>.
Critics respond: "Barack Obama's bid to place a new Social Security tax on very high incomes is either a bold or foolhardy plan, depending on who critiques it."
John McCain "supports supplementing the current Social Security system with personal accounts -- but not as a substitute for addressing benefit promises that cannot be kept" (per McCain Web site). Beyond this, we were not able to identify any specific McCain proposals relative to Social Security.
Our Mission
Founded in 2002, the Public Program Testing Organization (PPTO)
is an all-volunteer, tax-exempt organization dedicated to evaluating the
effectiveness and efficiency of governmental programs and not-
|
for-profit entities. Our
initial focus was directed towards an evaluation of the United States Social Security system, and proposals
for reform of that system. Several items related to Social Security can be
found on this page and on the Social Security page. Our current focus includes an evaluation of
issues related to the United States war on terrorism and its military,
economic, and political endeavors in Iraq. The PPTO's findings are communicated via radio
show presentations,
newspaper commentaries, direct communications with governmental agencies and
congressional leaders, and via this Web site.
Recent Social Security Trustee Report: Some improvement in long-range financing, but large deficits continue (March 25, 2008) Read more.
Fake janitors skim $2.2 billion from SS trust fund?!
|
Investigations by Joe Fried and the PPTO lead to Inspector General finding of $2.2 billion in unauthorized Social Security payments! For full story click here>> (Updated 7/3/08) |
Other Important Issues
|
A Conversation on Strengthening Social Security with - President George W. Bush - - Cedar Rapids, Iowa, March 30, 2005 -
PPTO Director Joe Fried participated in an informative "Conversation on Strengthening Social Security," held on March 30, 2005 in Cedar Rapids, Iowa. The program, which was hosted by Des Moines' Newsradio1040 radio host, Jan Mickelson, included many topics related to Social Security, and involved the following participants: President Bush, Senator Charles Grassley, former Congressman J.C. Watts, and American Spectator contributor David Hogberg. Audio clips of each speaker are available at this link>>. |
----- For many more Social Security issues ---> click here>> -----
Interviews
To arrange an interview with Joe Fried, to discuss any subject on this Web site, call 216 524 2143, or e-mail joefried1@gmail.com. Joe is the director of PPTO, and is a CPA and public auditor. He has published two books: How Social Security Picks Your Pocket (Algora Publishing, 2003) and Democrats and Republicans - Rhetoric and Reality (Algora Publishing, 2008)
|
Did you know?
|
|
(Where visitors to our Web site express their own opinions)
Ticket to work is a failure (October 29, 2009) The "Ticket to Work" program was created by an act of Congress in 1999, and was supposed to encourage disabled workers to seek rehabilitation services that could get them back into productive jobs. However, the results seem to be dismal. A visitor to the Web site put it this way:
This harsh assessment prompted us to seek information on the status of the program. The last published evaluation (in 2007) reviewed the program's progress as of December 2004 - and it was dismal. At that point only 1.4% of eligible disabled beneficiaries were participating.
Now, the SSA is implementing new regulations designed to improve the system. We remain dubious.
A windfall for geezer kids! (September 18, 2008) Some people seem to feel that "entitlements," such as Social Security, should be unchangeable, as if cast in stone. Any reduction in benefits would, in their opinion, violate a sacred commitment made to beneficiaries. However, we must constantly review entitlement programs to ensure that they are effective, efficient, fair, and free of loopholes and give-aways. Recently, a visitor to this Web site, Lesley Throup, pointed out such a wasteful loophole.
The minor children of Social Security beneficiaries can qualify for substantial monthly benefits until they reach the age of 18. Consider this example, provided in the October 2008 issue of Kipplinger Personal Finance: Donald McCarren is 68 years old and has a daughter who is 5 years old. He recently learned that, because he is a retiree and Alexa is a minor, she is entitled to SS benefits of $1068 per month until she reaches the age of 18. McCarren received a retroactive payment (on behalf of his daughter) for $40,000, and will receive more than $250,000 by the time Alexa is 18.
Frankly, we believe that men in their '60s should not have children if they have to rely on Social Security to support them. This is a total waste of money, and an outrage. Congress needs to modernize the Social Security benefit formula to eliminate such wasteful benefits.
A Quick Fix for America’s Elections By visitor Jon N. Hall
===========================================
Illinois school district cheats summer worker? May 3, 2008 Mr. John Grizzle writes:
Unfortunately for Mr. Grizzle, his school district chose to not give him TRS coverage for his summer work, which included teaching in the driver education program. This coverage omission will cost him hundreds of dollars per month in benefits, adding up to about $100,000 during the course of his retirement. Read more>>
|