I’ve given this quite a bit of thought. I want some ideas from the economists that visit here. Here’s my plan for social security reform:
- Remove the social security cap on income. Sure it will penalize the Bill Gates’, but they can afford it. It puts a lot more money in the social security system RIGHT NOW. This move alone will make social security solvent for the next generation.
- Remove the limits on IRA contributions. Sure it favors the rich, but that’s the trade-off for the additional taxation.
- Federally insure IRA contributions up to a certain amount, say $50,000 per year. That assures that those people who invest heavily in the "retirement system" don’t lose it all.
- Raise retirement to 70. The problem hammering at social security right now is the increased age of mortality. People are living longer and healthier. Most don’t even want to retire at 65. Keep them working. Keep them active. And, give the rich a reason to contribute to the system by being able to keep their good employees longer if they so choose.
I see this scenario as a win-win-win situation with no logical downsides. Everyone "suffers" a little, everyone gains a little. And, I think it’s a lot more politically sellable than "messin with my retirement".
– Moon
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Moonage Political Webdream on 04.06.2005
Power Panel?
I got the head’s up on this one from Political Vice Squad.
Moonage Political Webdream » Blog Archive » Fixing Social Security on 01.22.2008
[...] have the Social Security issue all figured out ( again ). It doesn’t require cutting back benefits or raising taxes. It’s simple [...]