POSITION PAGE
Social Security, Medicare, and Pensions
CHANGE
- Revert Social Security and Medicare to a safety net based on need
- Transform all government pensions – Congressional, military, civilian – to fully funded, self-directed, defined contribution plans
SOLUTION
- Base Social Security and Medicare eligibility on need
- Raise Social Security and Medicare eligibility age for future participants to parallel changes in life expectancy
- Eliminate Social Security (FICA) and Medicare taxes for employees and employers
- Put all Social Security and Medicare expenditures "on budget" (paid from current revenue instead of trust fund)
- Draw down Social Security trust fund to meet current liabilities and commitments
BALANCE
- Maintain current benefits for current program participants
- Fund all programs in current year and eliminate future taxpayer liability
- For future Social Security and Medicare participants, phase in sliding scale for benefit reductions as participant income increases
- Encourage individual savings by replacing all tax-deferred accounts with single $25,000/year contribution to one account, allowing "catch up" contributions in subsequent years.
