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In general, the art of government consists in taking as much money as possible from one party of the citizens to give to the other. – Voltaire (1764)The Freedom IRA – Stop Robbing from the Young to Fix Deceitful Government
Incredible! Unions and socialists don't trust Obama on Social Security. The Hill reports that a coalition of unions, interest groups, and socialists fear Obama will change Social Security. Today and until the election, most of these groups are strong and active campaigners for President Obama.
Immediately after the election, the coalition will hold a major media event to stop President Obama from “tinkering” with the consumer price index, which determines the rate of government benefit increases. Senator Bernie Sanders (VT), an avowed socialist, describes the coalition. [Read: Social Security Structurally Violates Freedom]
You can have virtually all of the senior groups, you can have the unions, you can have some of the veteran groups as well coming on board,” said Sen. Bernie Sanders (I-VT), founder of the Senate’s Defend Social Security Caucus, who has been in contact with organizers.
All of these special interest groups are protecting advantages bestowed by government. Tragically, the government has not saved enough (if anything) to pay for future benefits. In order for government to maintain its promise to every beneficiary, government must substantially increase taxes on present and future workers. In reality, Senator Sanders seeks to Rob from the Young to Fix Deceitful Government.
This is an inherent problem with all democracies. Politicians pander and please their immediate constituents and push debt onto future workers. Europe, the United States and most states have dangerous debt, which was substantially caused by fraudulent and mismanaged government retirement schemes.
Thus, Sanders and associates are continuing what politicians always do to protect their special interest constituents and kick the problem down the road. Alas, Social Security will never – never – never keep its promises. Social Security will never – never – never be secure. Politicians cannot be trusted with workers' money. Only personal accounts owned by the worker will stop this disastrous government fraud of Rob from the Young to Fix Deceitful Government.
For freedom and prosperity to prevail in America, young Americans must make a grand bargain. We must allow young American workers to put their entire payroll tax into an IRA. That is 7.65% of their income. In exchange for investing in their IRA, the worker forgoes any and all claims to Social Security, and contracts not to take withdrawals from their IRA until age 72. We'll call this the Freedom IRA, which is would be in addition to all other forms of retirement accounts – 401k, Roth, private accounts and others.
Additionally, this deal should be offered to every American. Any worker that wishes to forgo Social Security – young, middle-aged and older – shall be allowed to opt-out of Social Security. In order to greatly increase the opt-out rate, there would never be a tax on the money invested in the Freedom IRA if the benefits are withdrawn after age 72. To be clear, everyone opting-out would never be taxed – not prior to deposit or when withdrawn.
Included in the Freedom Deal would be enticements for people currently 50 years and older to voluntarily delay receiving Social Security benefits until they reach age 72. Again, the incentive would be no taxation on their Social Security benefits.
The combination of young people opting out and seniors voluntarily delaying benefits would greatly reduce the cost of transition. Most importantly, the Freedom IRA will stop political deceit and manipulation.
An enormous benefit to young Americans – our children and grandchildren – personal accounts will create a nest egg of 3 to 5 times larger than what Social Security currewntly promises. Obviously, the individual worker would benefit as will America's economy with millions of workers saving and investing. [View: an excellent video by Professor Antony Davies at LearnLiberty.com]
The Freedom IRA will greatly restore freedom and prosperity in America.
Previous posts discussihttp://www.freedomworks.org/node/add/blogng Social Security: