Subject: RE: A Different Approach to Social Security
In response to G Flynn's proposed wealth tax.
Thank you for proposing an alternative; however, you do miss one point: What right do you have to propose that the wealthy pay more for being wealthy?
I am not currently at an income leavel that would make me a victim of your tax, but I am working toward that goal. Why should I be penalized for making money?
In any organization 20% of the people do 80% of the work, that is true for the country as well. Why should those who produce be penalized for producing, and those who do not be rewarded for not producing?
Moreover, that wealth that you say is owned by a small percentage of the population is invested capital not vaults full of treasure that the wealthy are sitting on. That wealth is funding new products and businesses and economic growth. By taxing that wealth you will do nothing more than limit the power of the American economy.
It is evident that the current unfunded system must be funded somehow, but only to the extent that it pays benefits to those who have paid a tax for it all of their lives, plus a percentage equal to our "contribution" to the rest of us who have "contributed" and are still. [please see "Transition Costs to Privatize: A Myth" by Richard Arnold] Once the obligations that our government promised have been paid, we should eradicate the system and allow private citizens to invest their own money in the method of their choosing (for those of you who are not sure how to invest there are numerous financial advisors whose job is to make you money).
Our country is based on free enterprise Capitalism. Why do you think so many people have moved here throughout our history? We must never create systems that punish progress. Would you cut off your nose to spite your face?
By allowing the producers to produce with out intervention, all Americans will benefit, even those that do not produce but only consume. Prodcution creates new wealth and wealth benefits all participants in an economic system. By promoting the economic growth of the United States we would no longer have a need for a Scoial Security system.
