TheBrutalTruth
Well-Known Member
Removing the cap isn't going to solve the problem, the math has been looked at there.I'm not blind, I realize that without some changes it cannot survive. The problem arrived with the longevity of seniors and the withering of the work force, yes I concede that. There should be a way to make it work. Here's one Idea: remove the cap on income deductions, that would cover the plan just fine for a hundred years. Now tell me, when it comes your turn, I suppose that being such an altruistic person and not really needing it because you've been soooo successful, you'll be sending your SS back.
The entire system should just be done away with. People are intelligent enough to realize on their own that they need to save up for retirement, and while it can be argued that those at the lower levels of the economic ladder actually benefit from it, that is only true when one ignores the fact that it is entirely possible that they would use the extra money that they would receive to better themselves through knowledge, or through entrepreneurship.
As far as me being sooo successful and willing to send it back. If I reach the point where I don't need it, yeah, I'll be more than willing to tell the government to take the SS Check and shove it, because I don't need it, but odds are that it wont even be viable when I get to that point in 40+ years, assuming they don't jack up the retirement age to 75, and jack up the payroll tax rates even higher.
The entire plan was an epic failure from the get go. The first beneficiary contributed all of 5¢ and got 21¢ in a lumpsum payment.
Though I don't even care what they do with SS, I'd be perfectly content if they just allowed people to opt out, and accept personal responsibility for themselves. People should not be obligated to contribute to Social Security if they don't want to. Of course, it is likely that a lot of people would still contribute, merely to avoid having to accept personal responsibility for their retirement, or because they don't want to have to deal with the added stress, or because they believe that they are not knowledgeable enough to invest (which is a myth perpetuated by stockbrokers and Wall Street.)
Of course, it is quite possible that those that leave would be mostly concentrated in the middle and upper middle class, and thus the entire scheme would fall apart that much faster, but seeing as how it is untenable to begin with, that should not be that much of a surprise.
But assuming that the government wont allow an opt out, perhaps they could allow for exemptions for education from payroll taxes, like the do for income taxes, as having a better educated workforce would lead to better paying positions. Of course, they would likely have to put a limit to that option at some amount of earnings.
Or even privatize it gradually so that those that already contributed do not get screwed out of their contribution. Quickly privatizing it is not a viable option, or quickly converting it to private savings accounts is not a viable option. Any change would have to be gradual to ensure that those that have already contributed are not deprived of their benefits.
Failing a gradual change the next option, and least attractive of the three is floating bonds for the trillions that are needed to pay out the benefits in a lump sum and close Social Security at once. They don't even necessarily have to bother with the Disability and Medicare components of it so that people that need medical care in their old age can still get it, and people that are disabled can still be taken care of.