The Taming of Social Security
They still don’t get it.
The “Social Security” system does not work. And it cannot work.
From the Washington Times:
Both parties mull raising retirement age
Besides raising the retirement age for full Social Security benefits to 70 for people now 50 or younger, Mr. Boehner suggested curbing benefit growth by tying cost-of-living increases to the consumer price index rather than growth in wages, and providing benefits only to those who need them.
The key to fixing “Social Security” is to dismantle it. Let it die a silent death.
I would propose a tapered retreat from this devastating and very much failed “Social” experiment.
1 – all those who are presently receiving benefits (top third), continue to receive them. And continue to be taxed accordingly.
2 – all those in the ages of 45 to retirement age (middle third), have the choice of
A: continue to pay in, and receive after retirement
B: stop paying in, relinquish all rights to the monies already payed in and not receive after retirement.
3 – all those less than 45 (bottom third) have no option to “Social Security”. They keep their money and never receive. They keep the 7.5% of their salary to do what they need or desire to do. Invest, pay for a house, gamble. It is their money, they spend it.
So this plan will slowly phase out “Social Security” in less than two generations, with the most humane and least social/fiscal impact to our society.
If, on the odd chance a person or family fails to successfully prepare for their future, then they fall back on to “Welfare”. But that can be acceptable, since, unlike “Social Security”, “Welfare” is means tested. You cannot be financially stable and receive “Welfare”.
We as Americans are perfectly willing to help those that really need it. But loathe the idea that someone like Bill Gates or Warren Buffet or any upper middle class, well financed transplant to Florida, would be allowed to receive “Social Security”. Even knowing that it would most likely be taxed away.
Phasing out “Social Security” gives a pay boost to both employees and employers. It solidifies, in general, the fiscal security of all individuals and companies. And, most importantly, it secures the wealth and well being of everyone in their retirement years.
And when they die, they get to pass their savings to thier heirs.
Two generations is NOT a long time to wait to fix a horrific wrong perpetrated on The American public.