Since social security isn’t sustainable here is how we get out of it…
The simple plan:
1. People who are today over 40 years old will continue to pay SS and will recieve it when they turn 65.
2. People who are at this moment 0-40 years old will pay social security till they are over 40, then they stop paying and save, they will not get social security.
3. People born after today will not pay or get social security.
Unfairness: We can’t just cut SS as there are people currently dependent on SS, BUT if we do nothing we all continue to pay more and more (as the # of old people increases) with less liklihood that we will get enough to support us when we need SS. So we’ve paid with little to no return anyway. We are going to pay for our parents and grandparents mistakes no matter what we do, can only work to not further ruin OUR children’s futures.
Math and life expectancy: That is why they get 25 years to save (age 40 to 65), which is over half of their working years AND is during the time of their highest earning potential (pay scale). There would be the same ammount of people paying for the next 40 years and fewer and fewer people taking (as the people who are today over 40 die), so as time goes on the tax would slowly diminish after getting a buffering surplus for the small % of peope who live 100+.
If everyone did have to pay the SS tax is only going to become increasingly burdensome, this way it won’t increase, and will eventually disappear. Most arguments against this action stem from the accountability that people would be held. If they do not save up in those 25 years or spend unwisely their savings, they’d be in big trouble. It is not the job of a government to molycoddle adults, at some point we must be held accountable for our actions and to face the consequences. We can educate people who are uneasy about finances to alleviate their concerns, and deposit-only (til 65) retirement accounts could be created. The decreased tax burden would allow people to afford to charitably support the misfortunate elderly who don’t save enough.
The idea is SIMPLICITY, EFFICIENCY, and TRANSPARENCY in our legislation.
Teal Furnholm 