Thank you again for this unique opportunity to look into and provide input to the legislative process.
I don't believe any of the plans presented thus far go far enough toward correcting the insidious and largely hidden injustices and inequity of Social Security.
Social Security is:
(1) detrimental to our nation's economic growth and prosperity;
(2) an immoral tax;
(3) a destroyer of class mobility;
(4) unfair to current workers; and,
(5) anti-family and anti-parenting.
Economic Growth and Prosperity
None of the plans goes far enough toward moving our system to a fully funded wealth creation system of retirement instead of a pay-as-you-go wealth transfer system. This means that the United States will miss the world of opportunity, possibility, vigor and growth that our nation could see under a system that invested in our future and endowed our children with the tools to make that future whatever we and they might dream.
Immoral Payroll Taxes and Class Immobility
None of the plans addresses the inequity of using regressive payroll taxes - instead of progressive general taxes - to fund the redistribution goals of the system. It is a fine thing to help those who are in need, but it should be done fairly and according to the ability and responsibility of each person to contribute. But doing this with payroll taxes, the rich will continue to get richer while the middle class will be stuck with the bill for our goals of lifting the poor out of poverty.
Families and Parents
None of the plans addresses the inequity of using payroll taxes - the return on parents' investment of love, time and money in the human capital of children - to fund current benefits. This means that those who chose not to rear children - those who chose to devote their time and money to more affluent lifestyles and to personal investments in stocks and bonds - can continue to count on the investment of parents in children to fund a part of their own retirement. And parents - who don't live those more affluent lifestyles and who don't have the extra money to invest for their own retirement - can see their endowment to their children given to non-parents and parents alike.
Generational Inequity
None of the plans being discussed offer anywhere near enough in terms of allowing me to keep enough of my own payroll taxes to fund my own private retirement account. This means that I will probably never be able to enjoy the type of retirement many current retirees take for granted. These plans may serve to assist older baby boomers who have fared well economically, but beyond that, later baby boomers and younger generations will be stuck with Social Security mediocrity.
To avoid any misinterpretation of the above, I reiterate that I support:
1. Means testing of current benefits;
2. Payment of current benefits with progressive general taxes;
3. Creation of private retirement accounts with most of current OASI taxes (not DI);
4. Use of bonds issued to individuals in partial recognition for their past contributions under the current system;
5. A supplemental safety-net benefit funded with general taxes payable to any person whose personal retirement account and other assets fail to yield a sufficient minimum income in retirement.
