The Social Security Conundrum: Taxing the Deceased
At Extreme Investor Network, we pride ourselves on delivering insights that resonate on a deeper level. Today, we explore a perplexing issue in America’s Social Security System—a look into how the living have been financially supporting the deceased through flawed oversight.
The Surprising Findings
Two fundamental truths in life are death and taxes, but what happens when the two collide in the realm of Social Security? Recently, the Department of Government Efficiency (DOGE) uncovered an astonishing oversight: 12.3 million individuals marked as Social Security recipients were, in fact, deceased. Imagine thousands of individuals believed to be alive, but in reality, they have passed away decades ago. Some of these recipients would have surpassed the extraordinary age of 120!
In 2015, authorities alerted us that the Social Security database had not been adequately updated for over 6.5 million Americans aged 112 and older. At that time, there were only 35 verified individuals in this age group. This discrepancy raises the critical question: Why did it take so long to uncover these discrepancies?
The Crooked Landscape of Social Security Numbers (SSNs)
The Office of Inspector General (OIG) indicated potential misuse of these SSNs, with illegal practices like opening bank accounts and applying for jobs rampant in these outdated records. The fallout from this oversight was staggering, with over 4,000 E-Verify checks generated for individuals allegedly over 112 years old, alongside countless fraudulent wage reports.
An Unacceptable Cost of Negligence
Ten years back, this shocking issue barely made headlines, with the Social Security Administration (SSA) claiming that updating its electronic database would be too costly. A staggering $3.1 billion in wages and income was linked to SSNs assigned to individuals over 112 years old between 2006 and 2011. Lawmakers acknowledged the problem yet hesitated to take meaningful action.
Fast-forward to recent days, there has been a renewed bipartisan acknowledgment of the issue. However, it has now become increasingly politicized, especially with figures like Elon Musk drawing attention to the situation. The Paycheck Protection Program (PPP) fallout reveals further complications: loans were issued to borrowers over 115 years old, with one case of a 157-year-old receiving $36,000 in federal support.
A Path Toward Resolution
After a lengthy investigation, DOGE finally took steps to rectify the situation, marking 12.3 million individuals as deceased in just 11 weeks. They found staggering figures: 7.2 million recipients between 120 and 139 years, 4.8 million between 140 and 159, and even 124,000 SSNs attributed to individuals over 160.
Despite these significant findings, complexities remain. Some individuals still possess numerous birth dates in government records. Moving forward, DOGE aims to address the issue as it continues to investigate, especially concerning migrant records within Social Security.
The Bigger Picture
As taxpayers annually face scrutiny for reporting their earnings, the government operates in the shadows, allowing negligence to masquerade as oversight. It raises fundamental questions about the efficiency of a bloated governmental structure that struggles to maintain accurate records.
At Extreme Investor Network, we believe understanding these systemic issues is crucial for making informed financial decisions. The larger implications of Social Security management stretch beyond mere numbers—they reflect on the trust we place in governing bodies to manage our funds wisely. Join us as we unpack more about the economic intricacies that shape our world.
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