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Subject:  Re: OT: On Fixing Social Security Date:  6/21/2004  10:07 AM
Author:  2old4bs Number:  173447 of 838373

Hi tmeri,

I agree with you in theory, but some refinements are needed to your plan, IMHO:

1. Eliminate social security payroll taxes today.

First, I don't think we should eliminate them, but rather allow employees to choose to redirect their portion of the tax to an 'account' of their choice (i.e. Vanguard, Fidelity, e*trade, etc.). These accounts should remain 'inviolate', IOW, no borrowing against them for any reason (that means no MARGIN trades too!), no withdrawing from them until retirement age is reached (except for disability cases).

2. For the purposes of future SS benefits, calculate them as though everyone quit working today. If you've been working for only 10 years, you'll get the benefits that you would if you quit today. It won't be much, but then you haven't contributed as much as someone who paid SS tax for 40 years.