My plan would use the current $1.355 Trillion in the Social Security Trust Fund to pay a means tested benefit of $1,000 a month to each senior in need. This benefit would be adjusted yearly by the change in the United States Average Wage, which is generally greater than inflation.
The social security trust fund would last about ten years at which time general revenues would be needed to pay this means tested benefit. It would take 37 years to reach equilibrium at which time about 9% of the elderly would need assistance at any given time. The many can easily take care of the few but not the other way around.
The worker would be required to open an IRA style account at a financial institution of their choice where the employer's share of the social security tax would be deposited. The employee's tax would never be taken out of the check so that the employee could use these wages for debt reduction, retirement, education, health care, etc. The total controlled by the employee would be about $3,600 per year ($1,800 in the IRA style account and $1,800 left in the paycheck).
If we want to save social security, then each adult must send a check today to social security for $87,000, or cut benefits by 40% or raise taxes by 85%. There simply is no painless solution. How firm are you on saving social security?
I am an Eagle Scout and have tried in vain to be fair. However, Social Security is not fair, never was fair and cannot be made fair. I am not going to lie to you about this being painless. This mess we have inherited should have been taken care of decades ago.
A program that pays those born after 1985 just 29 cents back for each dollar of taxes and credited interest is not fair. Americans want value for their dollar. You can buy a value meal at about any fast food chain consisting of a sandwich, fries and drink for about $4.00. If Social Security were a value meal, it would cost $13.79.
Mark Souder supports tax-free Social Security Savings Accounts. Tax-free savings is an oxymoron. We have a $7 Trillion national debt and ran a $639 Billion deficit in 2003. Tax credits reduce federal income taxes; increasing the deficit. This is no different than you borrowing money to pay for retirement.
How do workers save when 90 to 100% of their potential savings is taken from them in the form of FICA taxes?
During your lifetime has the Social Security tax ever been cut? If you think Social Security is not fair to you, will it be fair for your children?
I am compassionate and will do my utmost to make sure no needy senior is left behind. However, we need to make a very painful decision now. You can either declare your independence from Social Security and over spending by voting for William Larsen May 4th, or continue with the same old scam.
Sincerely,
William Larsen
Learn more by visiting www.justsayno.50megs.com
Written and paid for by William Larsen for Congress
The Plan