This would be a terrible idea. It would provide a big disincentive to save for retirement. In theory, I suppose, but not really. We have welfare now, but most people don't see it as a disincentive to work. A few total losers, maybe, but not a statistically significant percentage of the population.
We have plenty of welfare programs. We don't need every program to be a welfare program. That's an interesting way of putting it. I look at it the opposite way: We don't need a mandatory government retirement program. All we need is a safety net program to make sure that those whose retirement funds are insufficient can stay out of poverty, or maybe a little better.
Direwolf, do you really want a 12.4% tax increase on the country's most productive citizens? No, I'm not sure the rate should be that high. But I'm sure that it should not be a regressive tax. Why should Warren Buffet pay a much lower effective tax rate than a postal worker, e.g.? If you eliminated the cap ($90k, I think), you could probably lower the rate slightly. In any event, whatever the rate is, even a flat rate hurts a rich guy less.
If so, as a tax hiker you make Kerry look like a rookie. BFD. I'm not interested in how I compare to Kerry. I'm interested in rational thought. When I hear a good argument for regressive taxes, I'll change my mind. Seems to me like a regressive tax is not very Christian, either.
Even if it did, the politicians would just spend it. That's not a good argument for not raising the money. That's like a Grover Norquist scare tactic. Or maybe an argument for critiquing the budget. Anyway, I'd support some sort of an Al Gore "lockbox" arrangement for any additional funds raised by a SS tax increase.
Explain to me again why having bonds in the trust fund helps anything. If it does, why not just put an extra few trillion into the trust fund. We could do that with the stroke of a pen tomorrow, though I really don't see how it would change anything. I don't understand this at all.
__________________________________________________
What a drag it is getting old. -- Stones