In a video released by Forbes in late February, Senator Tommy Tuberville from Alabama voiced significant concerns about the current state and future of financial security for Americans, focusing on Social Security and national debt.
Senator Tuberville said, “This is all a scam,” emphasizing the financial struggles facing Americans, especially those nearing retirement. He highlighted the impracticality of retirees living on $2,000 to $3,000 per month. “It’s impossible because what happens, it comes up here, we spend it; we’re $35 trillion in debt. We don’t have any of your money; we’re dead broke,” he said.
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Tuberville criticized the handling of Social Security funds, suggesting that if individuals had been allowed to invest their contributions in the market, they could have accumulated substantial wealth. He argued, “I could have put my Social Security money, 40 years in tax, in the market and probably be worth 8 to 10 million today. But the federal government wasted it.”
Tuberville touched on the tax implications of Social Security, expressing frustration over people being taxed a second time on their contributions. He pointed out the expansion of the Social Security tax, which has been around since Aug. 14, 1935, when President Franklin D. Roosevelt signed the Social Security Act. The first payroll taxes were collected in January 1937; workers and employers each paid 1% of the first $3,000 in wages. In 2024, employers and employees each pay 6.2 percent of wages up to $168,600.
Addressing the need for systemic reform, Tuberville advocated for a shift towards a universal benefit system that would more fairly distribute benefits across different income levels. “We need to bend down the benefits for the middle- and upper-income earners, actually increase them for the lower-income earners,” he suggested.
The Senator raised concerns about the long-term sustainability of Social Security, particularly for younger generations who doubt they will see any return on their contributions. He questioned the equity of the system, noting that lower-income and Black workers are least likely to benefit from the funds they have contributed.
The discussion concluded with an emphasis on the need for innovative solutions to protect retirement incomes against market volatility and the importance of allowing more personal control over retirement savings, such as the ability to invest in private 401(k) plans instead of Social Security.
Social Security is a valuable resource, but it shouldn’t be your sole retirement plan. The average Social Security benefit isn’t enough to cover most retirees’ expenses, and future benefit levels may be adjusted. To ensure a comfortable retirement, consider developing a comprehensive retirement strategy. Consulting a financial advisor can help you assess your needs, risk tolerance and investment options, and create a personalized plan to achieve your financial goals.
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This article Senator Tuberville Slams Social Security For Being A ‘Scam’ — ‘We Don’t Have Any Of Your Money. We’re Dead Broke’ Says Government ‘Wasted It’ originally appeared on Benzinga.com
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Source: finance.yahoo.com