RE: How about replacing the payroll tax with a 1% national sales tax to fund SS and Medicare.
I’ll agree with with that with the following caveats:
1) HOW DO YOU PREVENT THE FEDERAL GOVERNMENT FROM RAIDING THE SS FUND AND STUFFING IT WORTHLESS IOU’s LIKE IT IS DOING NOW?
2) Current SS payout for retirees is based on the percentage of your salary taken from you. The higher your salary, the bigger you the amount you get per month when you retire.
How is a 1% sales tax going to replace this system?
This would mean everyone gets the same monthly amount when they retire regardless of current income.
That’s the whole point. Under the Constitution, all citizens are supposed to be treated equally. Everyone should get the same amount. Social Security should be a last resort poverty insurance for Seniors, not a Ponzi scheme ‘pension.’
If you want to retire in comfort, save for it. And if you care about your kids, you can get a hybrid life insurance policy that they can use as a lifelong savings and loan vehicle, with a million dollar value around age 60.
The whole reason we are in this mess is the idea that Government can guarantee comfort for every single person. There isn’t enough money in the world to pay for that unless everyone’s retirement contributions are invested in a growing economy.
1. There would not be a trust fund. Just pay todays retirees every month. No need to set money aside for future retirees.
2. Yes everyone would get the same. That should be a raise for low income earners and a decrease for the wealthy. It also would be a 7.65% increase in current wages so everyone could immediately contribute more to their own IRAs.