Social Security has been one of the biggest scams forced onto American workers and small businesses. Looking towards the future we need to do a few things to start phasing out this program while protecting those that have paid in for decades and those receiving the benefits.
1. End the small business and the SSI tax requirements for self-employed people, the combined Social Security tax (12.4%) and Medicare tax (2.9%) are the current rates. This money could be better used to create more independent wealth, hire more employees or expand. Ending the small business tax credit requirements keeps money in the bank for these businesses instead of getting to write them off at the end of the year.
2. To start phasing out the SSI program we need to plan for a few things.
A: Plan for a program that will allow any citizen of a certain age to OPT OUT of the SSI system and receive a lump sum payment of funds paid in plus an interest rate adjustment back. Their future paychecks will not have SSI deducted. These citizens will receive a dollar-for-dollar tax deduction if they invest into qualified retirement programs if they are required to file taxes. I believe a good age to consider would be those 35 and under.
B: For those over 35 they will have options to OPT OUT or continue to pay into the SSI system and the adjusted age to start receiving funds would be 60 years old. The SSI program will be adjusted for past inflation and will keep pace with inflation and COLA.
C: For those 18 years and under, you will never pay into the SSI system but will receive tax incentives for paying into a qualified retirement plan if you are required to pay taxes.
D: For ALL businesses, you will not be required to pay matching SSI for any employees.
E: At no point will any SSI payout or payments be taxed or considered income for any reason.
The end goal is to phase out the SSI system and encourage citizens to plan for their retirements while offering tax incentives to do so. If we can fund trillions for a 20-year conflict then we can find a way to make the above plan work for the American Citizens.