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Well, we all know that the younger generations are paying for the older generations medicare and social security. By the time the younger generation will retire, there will be nothing left for us as the deficits will be too much. How about a compromise? Since the younger generation is footing the bill for the older generation, we should put a 90% inheritance tax on those who use social security/medicare. That way it funds back to the younger generation instead of abusing them. What do you think?
I am very conservative fiscally but this idea is interesting. Essentially you are having people repay for the services they received while they were living.
I'm sure the boomers will be against it, and rightfully so, since they have been paying into SS for their working lives.
With that said, I think the idea is a good start to finding some sort of compromise. I'm not counting on SS and would love to see it phased out (easier said than done, I'm sure)
The current solution to social security and medicare is to reduce the value of the government's liability through inflation.
Not to defend current Pres. Bush, but at the start of his second term, he did campaign to reform social security and the nation ignored him. Since then, the pace of growth in the money supply and inflation started to accelerate, by now at an almost dizzying pace.
The gap between official inflation and real inflation reflects this devaluation policy.
I too would like to see it phased out: all we really wind up doing, for the most part, is subsidizing bureaucrats.
But there is unlikely to be a consensus to actually implement any kind of tangible reform, not least because it is indeed so hard to explain to most people, so the path of least resistance is to devalue the liability through inflation.
roosevelt ****ed us with the pyrimid scheme know as social security
its a complete joke of a system and a classic ponzi scheme whose bottom will drop out
I too would like to see social security phased out but with retiree's demanding continued entitlements, probably never happen. They rather the country go bankrupt then to lose their entitlements. As for the elderly who already paid into the system, they weren't paying for any guarantees, it is insurance and in this case... the insurance failed. Social security wasn't really a retirement plan, it is retirement insurance with no guarantees. The elderly supported it blindly and I think they should rightfully lose most of their death assets to pay back its costs. If I made a bad investment I lose, there was no guarantee. The elderly made a bad investment, they lose. Social security won't be here for me and I am paying into it. I rather cut my losses now then keep paying and have nothing in the end. The elderly won't lose their benefits as their death assets will pay for what they used and social security can be phased out without increasing taxes. The money to cover those that are retiring or will retire will be coming from those that use the system.
Phase it out and maybe replace it with a compulsory retirement constribution system. Force people to save 15% of everything they earn and make the account inviolable.
I hate to sound like Hillary, but a casual glance at the Retirement threads on this site alone exemplifies how daft people are about saving money.
Phase it out and maybe replace it with a compulsory retirement constribution system. Force people to save 15% of everything they earn and make the account inviolable.
Forcing people would be an extreme choice, and probably more ill-received than abolishing SS altogether (we're Americans, we don't like being told what to do by the federal government, ).
Why not phase out the big SS? Well, a few reasons it isn't as pressing as some would think. Firstly, the total bill is due over a decades long period, so it isn't as pressing an issue to congress. Secondly, you aren't making any friends if you start going on about taking away benefits from people (some of whom actually depend on those benefits). Moreover, it would also come off negatively to the AARP, which holds a very large number of consistent voters.
My idea, create legislation that requires companies to pay into retirement based on salary through a bank of preference. Also, regulate what these accounts can invest in *as to keep them based on stable growth*. Basically, everyone gets a special IRA when they enter the work force *full or part time*, and when they're working, money is automatically transferred in from the company. Depending on circumstances, this IRA could be transferred to a bank of choice, and upon taking another job, can be payed into by that company as well. It would have a strict age limit before any of the money could be used, and require a minimum amount be kept as cash. This creates a new specialty for banks, and many more jobs for the peoples. How is this different from forcing people? Well, it's more of a company requirement the way I do it. Doesn't really involve the individual much at all, except for investment choices "which are limited by law". Isn't perfect, but a heck of a lot better than letting the government try and run it.
Forcing people would be an extreme choice, and probably more ill-received than abolishing SS altogether (we're Americans, we don't like being told what to do by the federal government
I realize that and I do not suggest it lightly. I am fairly libertarian-leaning myself, but there are score of people who literally are not saving a dime and are defiant in their beliefs that they are unable to do so.
I hate to compel what should be common sense, but then again its better than having them becoming a liability of society only because they favored a big screen TV rather than an IRA.
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