Privatize Social Security and Pass Fair Tax


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

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About economics501

1 - free market Capitalist; 2 - Fitness Entrepreneur; 56 years old, VP at an Investment Bank in NYC, ex Venture Capitalist, happily married with 2 girls. Education: Rutgers and NYU. I allow Ted Hruzd, my friend to blog at will here. He has many posts here. I have known Ted since we were both students at NYU. Ted also works for an Investment Bank as a VP in Equity Global Markets. ------------------------- I was very very Socialist leaning as a 22 year old. I then strongly believed in Gov role in helping the poor. However, as a USDA Child Nutrition Programs, I personally accounted for millions of fraud, abuse, and waste of tax payer money. I came to believe that the poor would be best served with less Gov programs and more with direct aid via tax system. Then after 5 years I became a free market capitalist, was a venture capitalist in 2007 and helped start 2 high tech companies. I dedicate this site to champion free market capitalism as the best road to Prosperity. Please join in. If you disagree, fine, but please post with dignity and class and be civil. Argue with facts always.
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