SIVACRACY.NET

Jardinero1 asked, so here it is.

In a Sivacracy (government by me), I would do the following to fix Social Security:

1) Tax all income. Right now we only pay Social Security tax on the first $65,000 of wage income. And we pay nothing on capital gains. So tax it all to spread the burden across all wealth at all levels. Right now the working poor and middle class pay a disproportionate share.

2) Reduce payroll taxes. We don't need a 14-percent rate if we are taxing more broadly. Maybe 10 percent? I dunno. We would have to run the numbers.

3) Index up the age for receiving SSI benefits. We are getting older and healthier. So let's creep toward 75 from 65.

4) Encourage immigration. This makes America better in so many ways. It's the best way to balance out the donor-recipient ratio.

5) Be honest with Americans. First, an ethical government would tell the people that Social Security is not an "account" to which you have paid and from which you should expect an annuity. It is a system of shared risk through which active workers pay for those who are retired and unable to work. Second, a truthful government would stop lying about the SS system being "broken" or "headed for bankruptcy." It's solvent (in fact, in surplus) and will remain so until at least 2054, probably much longer. Even when it stops running a surplus, the program can still run temporary deficits until we make a demographic/economic correction (babies, immigration, productivity, etc.). Third, a responsible government would explain that markets do not always go up and that even in growing markets there are losers for every winner. Think Enron.

There. Social Security is not in "crisis" and does not need to be "fixed" by some privatization scam. In fact, the only thing threatening Social Security is the Bush administration.

Let's save it. Improving it woul be nice. But saving it from Republican crooks is our most urgent need right now.