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Started By
Message
A way to fix Social Security (Very unpopular take)
Posted on 3/7/19 at 12:43 pm
Posted on 3/7/19 at 12:43 pm
At some point, you have to rip the bandaid off so here's how I would do it.
Step 1: Set the age of eligibility to 70 years old.
Step 2: Set an age and DOB in which individuals are grandfathered in to the current system.
Step 3: Create a program in which you have the option to "opt out" over a 25-year period between age 36 and age 59. After your 60th birthday, you are stuck in the current system. Here's the specifics of the opt-out program.
At any time between age 36 and age 59, you have the option to formally opt out of the program. If you do so:
-You receive a lump sum of what you have paid in to Social Security in your lifetime taxed at a certain rate (at age 36, the rate is 95%, at age 38 90%, at age 50 60%, at 59 37.5%).
-Once you opt out, neither you or your employer are subject to Social Security taxes (6.25% employer, 6.25% employee).
-Once you opt out you WILL NOT receive benefits ever.
-Once you opt out, YOU CAN NEVER OPT BACK IN.
Step 1: Set the age of eligibility to 70 years old.
Step 2: Set an age and DOB in which individuals are grandfathered in to the current system.
Step 3: Create a program in which you have the option to "opt out" over a 25-year period between age 36 and age 59. After your 60th birthday, you are stuck in the current system. Here's the specifics of the opt-out program.
At any time between age 36 and age 59, you have the option to formally opt out of the program. If you do so:
-You receive a lump sum of what you have paid in to Social Security in your lifetime taxed at a certain rate (at age 36, the rate is 95%, at age 38 90%, at age 50 60%, at 59 37.5%).
-Once you opt out, neither you or your employer are subject to Social Security taxes (6.25% employer, 6.25% employee).
-Once you opt out you WILL NOT receive benefits ever.
-Once you opt out, YOU CAN NEVER OPT BACK IN.
24
Posted on 3/7/19 at 12:44 pm to CGSC Lobotomy
Get rid of it completely.
I am cool with this, but it should not be taxed at all at any age.
quote:
-You receive a lump sum of what you have paid in to Social Security in your lifetime taxed at a certain rate (at age 36, the rate is 95%, at age 38 90%, at age 50 60%, at 59 37.5%).
I am cool with this, but it should not be taxed at all at any age.
Posted on 3/7/19 at 12:46 pm to CGSC Lobotomy
1. Stop taking SS "contributions" from young people who are entering the workforce, so the program is completely phased out in about 50 years.
2. Start educating young people who are entering the work force on personal retirement saving.
Posted on 3/7/19 at 12:47 pm to imjustafatkid
quote:
I am cool with this, but it should not be taxed at all at any age.
What I'm proposing is how to fix it and make it solvent. Once it's solvent, you can phase it out.
Posted on 3/7/19 at 12:48 pm to CGSC Lobotomy
The problem with your plan is that all the net-payors of SS would opt out, all the net-beneficiaries of SS would stay in, and there'd be no funds for them.
Posted on 3/7/19 at 12:49 pm to TheHarahanian
quote:
1. Stop taking SS "contributions" from young people who are entering the workforce, so the program is completely phased out in about 50 years.
2. Start educating young people who are entering the work force on personal retirement saving.
My system rewards employers who hire employees who opt out and encourages companies to create competing retirement benefits. If I as an employer don't have to match a mandatory contribution that an employee would normally pay had he/she not opted out I would be more inclined to hire that individual as it would save me money.
Posted on 3/7/19 at 12:50 pm to imjustafatkid
quote:
-You receive a lump sum of what you have paid in to Social Security in your lifetime taxed at a certain rate (at age 36, the rate is 95%, at age 38 90%, at age 50 60%, at 59 37.5%).
So we let the govt profit off the interest of our money paid into it?
aaaand then only get back what we put in?
aaaaaaaand then still get our money taxed?
I'm not liking that.
This post was edited on 3/7/19 at 12:51 pm
Posted on 3/7/19 at 12:50 pm to CGSC Lobotomy
A 95% tax on your own earned money to OPT OUT @ 36?
GFY kindly sir.
GFY kindly sir.
Posted on 3/7/19 at 12:50 pm to CGSC Lobotomy
quote:You presume there is any interest whatsoever on the part of ANYONE in government to get rid of SS. There isn't! There never will be.
Create a program in which you have the option to "opt out" over a 25-year period between age 36 and age 59. After your 60th birthday, you are stuck in the current system. Here's the specifics of the opt-out program.
Why?
Because at a ROI of roughly 50% of T-Bills, it is far and away the cheapest money the US government can borrow.
Posted on 3/7/19 at 12:51 pm to deeprig9
quote:
The problem with your plan is that all the net-payors of SS would opt out, all the net-beneficiaries of SS would stay in, and there'd be no funds for them.
Hence the earliest opt-out age is 36. Remember that employers pay half the tax (total tax is 12.5%)
There are SEVERAL problems with my plan, but it's the best I've got that can be implemented quickly.
Posted on 3/7/19 at 12:53 pm to CGSC Lobotomy
I agree with pretty much all of this, including the inevitable phasing out altogether. In any way, shape or form, SS is unsustainable.
And no, you fricking marxists, who are bound to chime in. There is no option by which raising taxes on any class of citizen is a viable option.
What I think cant be avoided is the runway till the sundown. Somewhere in there, is a generation who will have to pay into SS that wont get much, if anything back out of it.
And no, you fricking marxists, who are bound to chime in. There is no option by which raising taxes on any class of citizen is a viable option.
What I think cant be avoided is the runway till the sundown. Somewhere in there, is a generation who will have to pay into SS that wont get much, if anything back out of it.
Posted on 3/7/19 at 12:54 pm to CGSC Lobotomy
quote:
You receive a lump sum of what you have paid in to Social Security in your lifetime taxed at a certain rate (at age 36, the rate is 95%, at age 38 90%, at age 50 60%, at 59 37.5%).
How are you going to be able to show what you are entitled to? Do I need to go back to every employer I ever worked for and get every pay stub back? Does the government keep track of exactly what each person has paid in?
Seems like a bureaucratic nightmare. Can you imagine the paperwork?
ETA: I'm a complete dumbass before anyone responds, and I'm leaving it up. Forgot it was on my W-2. ETA: I'm a complete dumbass before anyone responds, and I'm leaving it up. Forgot it was on my W-2.
This post was edited on 3/7/19 at 12:55 pm
Posted on 3/7/19 at 12:56 pm to FalseProphet
quote:They do make that claim.
Does the government keep track of exactly what each person has paid in?
Posted on 3/7/19 at 12:56 pm to CGSC Lobotomy
I like the theory behind this, but wouldn't this out more of a burden on the welfare program (not saying that's a bad thing, just asking)?
Anyone the contributes would opt out; which would most likely make it even more insolvent this pushing people to use other government programs to survive. Also, if you look at any reports on individual savings; it is pretty apparent that most Americans do not know how to properly save for retirement. So you will force people to work longer and/or rely on other government programs
Anyone the contributes would opt out; which would most likely make it even more insolvent this pushing people to use other government programs to survive. Also, if you look at any reports on individual savings; it is pretty apparent that most Americans do not know how to properly save for retirement. So you will force people to work longer and/or rely on other government programs
Posted on 3/7/19 at 12:58 pm to CGSC Lobotomy
Just get rid of it. It’s a Ponzi scheme that is in no way self sufficient.
Posted on 3/7/19 at 12:58 pm to Weekend Warrior79
quote:
So you will force people to work longer and/or rely on other government programs
I'm not forcing anyone to do anything. I'm providing a choice.
Posted on 3/7/19 at 12:58 pm to CGSC Lobotomy
I don’t know if any one posted this, but Social Security is a pay as you go system where today’s taxpayers are paying for the current beneficiaries. There is no lock box or other place where your Social Security taxes went. It is going out the Treasury as fast as it goes in.
There was a time when it wasn’t like this, when it first started because people didn’t live long enough to collect it so it went into the trust fund that essentially bought US Treasuries and helped to balance the budget.
Those Clinton years when there was an actual surplus if you take out Social Security on the balance sheet you would still see a deficit.
There was a time when it wasn’t like this, when it first started because people didn’t live long enough to collect it so it went into the trust fund that essentially bought US Treasuries and helped to balance the budget.
Those Clinton years when there was an actual surplus if you take out Social Security on the balance sheet you would still see a deficit.
Posted on 3/7/19 at 12:59 pm to Weekend Warrior79
IMO, the best solution is to make Congress pay back the money they spent from the SS interest proceeds.
Posted on 3/7/19 at 1:04 pm to Tarps99
quote:That is the way it is marketed.
but Social Security is a pay as you go system where today’s taxpayers are paying for the current beneficiaries
But of course that is not what it is. If it were paygo, there would be no "trust fund" and FICA withholdings would vary accordingly.
SS and Medicare are purely, simply Federal Borrowing Programs in which working Americans are forced to lend at painfully low ROI's, and in the event of early demise, no guaranteed benefits at all.
This post was edited on 3/7/19 at 1:05 pm
Posted on 3/7/19 at 1:05 pm to CGSC Lobotomy
Right... but at least you started the conversation..
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