The Motley Fool Discussion Boards
Retirement Discussions / Retire Early CampFIRE
|Subject: Re: Help! My Social Security is in Lucent||Date: 7/28/2001 12:33 PM|
|Author: SeattlePioneer||Number: 46648 of 709050|
<<Providing a 2% self investment tax may or may not be a good idea, but it will not solve the SS solvency problem -- it will make it more acute. Efforts to sell this idea as part of plan to fix Social Security are intellectually dishonest. This plan should be considered separtately as an augmentation of 401K legislation because what the plan really amounts to is a forced 2% 401K contribution.
It does help solve the SS solvency problem. It helps solve that problem for Gen X, Y and Z at the expense of the 'boomer generation. The Gen X-Zs who feel they will never collect any Social Security benefits would begin to have a stake in the system by gaining ownership in some portion of the taxes they pay.
It's also good practice in building the political coalition needed to further means test Social Security. The argument for that is that Gen X-Z will be hit for higher taxes unless a means of reducing payouts is adopted. If the younger generation can use their greater numbers to head off the money grab by seniors that has been the rule for decades, they can save themselves from being hit up for yet more money.
In my view, paying government benefits to people who don't need them is a stupid concept. It would be the natural way for GenX-Z to combine politically with the reasonable elderly to solve the Social Security problem.
|Copyright 1996-2013 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|