The Daily Record published my letter today about saving Social Security. Please log in on-line and comment — http://www.dailyrecord.com/article/20120818/NJOPINION02/308180007/A-few-tax-changes-could-do-wonders?odyssey=nav|head&nclick_check=1
In response the Associated Press article regarding Social Security status, the AP’s letter detailing Social Security’s weakening financial prospects is one of many warnings over past few years for reform. The time to act is now. Two specific measures will address this.
The first is to privatize Social Security in stages to remove it off our government. All new Social Security entrants should privately manage their account similarly to a 401)k). All current participants should likewise have option to privatize their account also. Those who would rather keep the current system should be allowed to continue as is. Expect many to choose to manage their Social Security privately.
The second measure is tax reform to provide long-term funding for core entitlements including public part of Social Security.
The Fair Tax, in Congress as HR 25, is the most promising of tax-reform alternatives. It eliminates all federal personal and corporate income and payroll taxes with a revenue-neutral consumption tax. The tax is set to be able to fund all federal budget priorities such as core entitlements. The zero percent federal corporate income tax will overnight position the U.S. as an entrepreneurial haven. Domestic and foreign companies and entrepreneurs will then flock to the U.S. This will grow the economy faster and provide further revenue to the Treasury.
The Fair Tax also eliminates the IRS and $430 billion per year
The Fair Tax also eliminates the IRS and $430 billion per year compliance costs. Use that to pay down our debt. Yes — technology exists today to replace the IRS.
Finally, to maintain a progressive tax system the Fair Tax provides monthly prebates to all up to the poverty level to offset impact of the consumption tax. To learn mode visit www.fairtax.org.
Ted Hruzd
Morris Township, NJ
economics501 