And here’s how. First, you have to admit that what we are doing is a form of a Ponzi scheme. I am paying for the folks who came before me in order that I might be taken care of by those that come after me. I am NOT, in any way, taking care of myself.
So here it is; the fix:
- Means Test. If you are worth more than $500,000 you don’t get Social Security checks. Period. This is not income, its net worth.
- If you are older than 50 your benefits won’t change [unless you’re worth more than $500,000]
- If you are older than 30 but younger than 50 your FICA will no longer be 6.5% but rather 4.5%. Your employer will have to continue to contribute 6.5%. You will NEVER receive Social Security payments.
- If you are older than 18 but younger than 30 your FICA will no longer be 6.5% but rather 2.5%. Your employer will have to continue to contribute 6.5%. You will NEVER receive Social Security payments.
- If you are younger than 18 you will not have to pay FICA taxes. Employers will still be required to contribute 6.5% until the year 2025.
If you STILL think that people are unable to plan for their own retirement, I am open to a 6% contribution from each person up to the current FICA ceiling. This money will sit in a private account either as cash, bonds or investments.
BOOM goes the dynamite. Problem solved.