Isn’t the debate about SoSec reform really a debate about the tax code?
There is, after all, nothing to stop any American making private provision
for his retirement right now. If I can carve off a bit of my SoSec payments
& privately invest them, that’s just a bit more in my funds, a bit less I
shall depend on public provision for.
Since Congress just spends our SoSec payments anyway, why not just scrap
FICA withholdings and just fund a universal basic pension from general
taxation? The level, age at eleigibility, etc. can all be debated. Since
we all understand (? I think) that there will need to be SOME public
provision, though; and since no-one (except possibly Ralph Nader) wants to
outlaw private savings for retirement; aren’t we really just haggling about
deductions on people’s pay stubs? Which is to say, about the tax code?
Speaking of which: Look at how the Flat Tax is catching on in Eastern
Europe. Is such a thing really
so unthinkable here?
I’m going to get some bumper stickers made up: FLAT TAX, FLAT PENSION.
Let’s simplify things for a change, and put some lawyers and accountants out
of a job.