Answer to Social Security 'overly helping the rich'

Robert Samuelson’s recent column suggests that programs for the elderly are cynical rather than “progressive.” It, in itself, is a cynical appeal for (anti)Social (in)Security reform disguised as revelation about aSiS being welfare for the “rich.”

Anyone who is honest admits that aSiS is a Ponzi scheme supported by taxation. Except for one year of job insecurity, I paid the maximum amount into aSiS from 1968 until 2012 at my full retirement age. Since the mid-’70s, I have and still do support abandonment of the aSiS system.

An equitable transition out of this system can only be made if its true nature is understood and addressed. Details are difficult but a few basic changes are clear.

Transfer to a needs-based system funded from general taxation. Eliminate the present income and excise taxes, commonly called the employee and employer “contributions.” Raise present wages by the amount of the employer contributions.

Make all income and withdrawals from defined benefit, 401k, and similar retirement plans tax free, at least for present retirees. Make contributions to retirement plans tax deductible at least up to present “contributions.” Charge any payments of benefits from the time the change is implemented against an individual’s estate.

Present workers should not pay for someone else’s inheritance. It is only by understanding and addressing the true nature of a problem that an effective solution can be devised.

This story was originally published November 4, 2015 at 10:16 AM with the headline "Answer to Social Security 'overly helping the rich'."