Teal Furnholm

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Escaping Social Security

Since social security isn't sustainable here is how we get out of it.
People who are today over 40 years old will continue to pay SS and will recieve it when they turn 65. 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. People born after today will not pay or get social security.
- May seem unfair to those who have to pay but wont get it - they would have to pay either way and still wouldnt recieve enough to support them anyway. Chalk it up to taking care of their parents/elders. That is why they get 25 years to save, which is over half of their working years and is during the time of their highest earning potential (pay scale).
-If everyone did have to pay the SS tax is only going to become increasingly burdensome, this way it wont increase.
-The decreased tax burden would allow people to afford to charitably support the misfortunate elderly who dont save enough (though it is hard to say one way or the other what the economy or america itself will be like in 25 years).

I have other tax reform plans that I will propose later to supplement this idea, but am interested in people's opinions. The idea is simplicity, efficiency, and transparency in our legislation.

  • Dec 10 2011: There's a certain logic to it, yes.
    The problem is:
    -Does this work mathematically? It seems a lot less people will be paying a larger amount of money.
    -accounting for increasing life-expectancy
    -It seems highly unfair way to pay it off. pretty much one generation paying for another without compensation.
    Isn't it better to cut everyone equally? Or somehow siphon some money to the younger generation somehow (ie schools/benefits)
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      Dec 12 2011: Math and life expectancy: 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+.

      Unfairness: we cant just cut SS as there are people currently dependent on SS; 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.

      Our Retirement (I am 29 so I too will be paying): If the tax ends when we are 40, at our highest earning potential, we have 25 years that we could put into a 1-way retirement account the same money we'd otherwise be paying to SS. 1-way account meaning no possible withdrawl till we reach 65 years old.

      I think most of the disagreements I've heard (I've talked to a lot of people about this) 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, we as a society are getting lazy, we are supposed to be held accountable for our actions and to face the consequences. We can educate people who are uneasy about finances to alleviate their concerns.
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    Dec 10 2011: If there is a mafia extorting money from someone, you cant extort money from someone else to pay extortion's victims what mafia promised to them, or you will become mafia's man yourself - its robbery.
    Privatization, light VAT tax, deleting unneeded goverment offices and functions of state is enough to pay off those who paid mafia for SS, and you wont need to force anyone to pay SS. Minarchism is the way to go.
    After paying them off, you could lower VAT tax even more to cover only infrastructure, police, military and courts.

    Add to that drugs legalisation which would point so much money from drug mafias' hands to state's pocket. With no SS and "free" medical care, we would not have to worry about fools drugging themselfs - they would not cost us anything. Every man have freedom to choose - if someone want to hurt himself, no harm happens to him - "Volenti non fit injuria".