Would it? A sales tax and a VAT tax would have to at least make up for the revenue lost. Plus it is also just lumped into the general revenue fund and Social Security and Medicare just become another line item like the debt. So the new sources will have to at least match the revenue generated from the old sources, and do so without the employer matching, so it's likely that the average tax payer will pay more under the new taxes than the old.
Something needs to be done. The status quo is not an option.
No argument there.
Trump is smart not to talk about entitlement reform now.
He just did by promising if reelected he would work to repeal the FICA and Medicare taxes.
Both parties must support reform jointly.
This Congress? This President? Nobody is interested in working together on just about anything.
Everything should be on the table. Assuming the objective is to preserve both programs, you take a look at benefits, revenue, fiscal parameters, etc. It would be like a zero base budgeting system. I can see more means testing and reconfiguration of the benefits. The systems can be made more efficient. Given longer life spans, the age for full benefits could be looked at again. At this point, it is too early to draw any conclusions.
Repeal of payroll taxes is another way of signaling reform. Obama had a 2% employee holiday on SS contributions. Trump wants a holiday on all payroll taxes. It is a very clever way to get the public on his side for entitlement reform in his next term. People will see a major jump in their salaries and employers will have more money to invest or expand. As they say, once you see Paree, how do you keep them on the farm.
Congress will be forced to work together once this becomes a crisis—and it will. Medicare looms on the horizon in about 5 years. Something has to be done. Reagan and Tip O’Neill had to work together to save SS. Hence the phased increase in raising the age for full SS benefits and forcing federal employees to join the system. Medicare already has a means tested premium system.