Social Security 2100 Act
Perpetuating A Failed System
Social Security 2100 Act
Perpetuating A Failed System
Rep. John Larson introduced the "Social Security 2100 Act" and it now has 208 Democrat co-sponsors, just 8 short of the number needed to pass the bill in the House. On his website Congressman Larson states the bill will:
- Expand benefits for all current and future Social Security recipients
- Cut income-taxes for over 10 million seniors by exempting more of their income from other sources
- Ensure the system remains solvent for the rest of the century
- Exempt people who earn between $136,000 and $400,000 from payroll-taxes
- Subject salaries over $400,000 to payroll-taxes
- Gradually increase the payroll-tax from 12.4% to 14.8%
- Base cost-of-living increases on a basis more reflective of inflation
In an article entitled, "5 Issues With the Social Security 2100 Act", authored by Sean Williams for Motley Fool, Mr. Williams made the following points:
- According to the Social Security Board of Trustees, the program is facing a mammoth cash shortfall of $13.9 trillion between 2035 and 2093, which is the result of a combination of ongoing demographic changes
- In less than 16 years, benefits may have to be cut up to 23% for retired workers
- More than 3 out of 5 retired workers depend on Social Security for at least half of their monthly income
- Since its inception in 1935, the full retirement age for Social Security has risen by just 2 years (from age 65 to 67) despite the average life expectancy increasing by more than 10 years since 1935
- The Bill doesn’t consider the declining birth rates which will mean fewer and fewer workers supporting more and more retirees
- Despite his good intentions to protect Americans’ retirement benefits, Rep. Larson and his co-sponsors are not only keeping the regressive payroll-tax, they are increasing its rate and making it even more harmful to lower-income families
- Unlike the income-tax, the payroll-tax is paid from the first dollar earned, and now, it doesn’t apply to incomes in excess of $136,000 for 2020. A teen earning $3,000 for summer work pays the same percentage as a doctor earning $130,000. A family of 4 is paying the same percentage as a single person
- In addition, since the employer pays 50% of the payroll-tax, this increases the cost of hiring employees and may not be factually true. Many economists believe that the payroll-tax paid by the employer would otherwise be paid to employees. If this the case, then the employee is really paying most, if not all, of the payroll-tax
The FAIRtax Solution
Contrast Rep. Larson’s bill with how Social Security & Medicare are funded under The FAIRtax:
- The declining birthrate isn’t a problem because the funding for Social Security & Medicare comes from The FAIRtax rate of 23%
- While seniors and children may not be working, they are consuming and will contribute to the solvency of Social Security
- Because of the prebate, The FAIRtax is progressive—unlike the present payroll-tax
- Workers receive their entire paycheck and only pay taxes when they purchase new goods and retail services subject to The FAIRtax
- For example, the teen saving for college will not have payroll-taxes deducted from their earnings and since the amount the teen pays for tuition will not be subject to The FAIRtax, the teen has more funds to pay for their college education and reduce the amount of any student loan amounts needed
- If additional funds are required to ensure solvency, then the rate will only have to increase a small amount because it’s paid by all consumers—not by a reducing number of workers
- If prices increase once The FAIRtax is passed, then The FAIRtax Act provides that the amount of Social Security payments will increase
In addition to not taking into account the declining number of workers relative to the number of retired people, the Act also doesn’t address the fact even more jobs will be lost because robots are projected to replace 20 million workers by 2030. Will the Congressman propose to make employers contribute a certain amount for each worker replaced by the robots?
Albert Einstein said, "The definition of insanity is doing the same thing over and over again and expecting a different result".
Rep. Larson, isn’t it time to discard the BROKEN payroll-tax system and fund Social Security in a better way which will protect it not for just a few years but going forward from now on?
It’s time we demand the solution benefitting everyone! Pass The FAIRtax—the only “Fair tax”?
The author George Bernard Shaw said these words in a play he wrote, You see things; and you say “Why?” But I dream things that never were; and I say “Why not?”
Isn’t it time for us to ask, “Why not?”
President Trump, “Embrace the FAIRtax, the only Fair Tax the only fair tax and the only real tax reform! Stand up to the Swamp. They will oppose you anyway because they see you as a threat. What have you got to lose?”
The truth is the truth. Remember, if we don't continue to tell the truth and demand a change, then this quote from George Orwell's 1984 may foretell our children's future:
“If you want a picture of the future, imagine a boot stamping on a human face—forever.”
Take Back America Again! Pass The FAIRtax Now!
FAIRtax Online Resources
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Americans For Fair Taxation - Chairman's Report Podcast on Spreaker posted Fridays at 6am-ET
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PopVox - The People’s Voice On All Things Legislative
Read Evasion Study Summary
The FAIRtax Guys
Ron Maiellaro & Bob Paxton perform their FAIRtax Power Digital-TV Show & Podcast. When the show streams to Facebook, The FAIRtax Guys plus a few AFFT experts are responding “live” to your comments and questions. A free app is available for iOS and Android.
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Digital TV are available on The FAIRtax Guys
This week's Episode #197 - "The Candidate & The FAIRtax"
It's an election year and there are many candidates for office. Some are incumbents and some are new to politics. Regardless of their political experience, they would be wise to endorse The FAIRtax.
How do you approach a candidate about The FAIRtax? Do you harangue the candidate relentlessly or purse them diplomatically? Do you overwhelm them with details or settle on issues important to the candidate?
The FAIRtax Guys discuss the do's and don't's of getting a candidate to embrace The FAIRtax. For instance, you first need to study The FAIRtax. Reading one or both books by Boortz & Linder would help. Watching past episodes of FAIRtax Power Radio is a good way too.
Watch & listen as The FAIRtax Guys walk you through the best ways to work with a candidate and their staff to secure another cosponsor of H.R. 25 after they are sworn into office.
As always, the AFFT is looking for volunteers to help their efforts. Watch or listen to see if there is some small way you can help.
There’s always more in FAIRtax Power Radio such as a reminder of the promotional items available now at Our Store and a review of Jim Bennett’s Grassroots Corner Report.
What Can Each Of Us Do?
Call the local and DC offices of your Representative and 2 Senators. Use the following script:
- I am sure Representative ____ or Senator ____ is in favor of everyone obeying the income tax laws.
- After they assure you their boss is not in favor of anyone breaking the law, ask if they are aware of the Cebula study showing $9 trillion of evaded income-payroll taxes over the next 10 years.
- Since most will say they don’t believe their boss has seen the study, drop off a copy, email a copy or click Read Evasion Study Summary and copy/paste the link into an email.
- Say you are going to call back in a week and ask what the Representative or Senator is going to do to stop this evasion.
- In a week, call back and ask specifically what the Representative or Senator is going to do to enforce the law.
- They probably will say their boss believes simplifying the income tax will handle the problem.
- Explain, when people evade income taxes, they are also evading the 15.3% payroll/Medicare tax and state income tax. So, it’s unlikely they are going to pay 30-40% when they were paying 0% because they have already decided it’s okay to cheat.
- Say, the only way to reduce evasion is to increase by tens or hundreds of thousands the number of comprehensive IRS audits done each year.
- Point out Evaders do not self-identify by putting an “E” on their income tax return.
- 80% of the people likely to be audited are trying to comply, but they will be forced to endure these IRS audits as well.
- Ask if the Member is in favor of this?
- If they say no, then ask again how the Member proposes to stop people breaking the income tax laws.
- Then explain the way to handle evasion without unleashing the IRS audits is The FAIRtax.
- If you meet with your Representative or attend a town hall and ask these questions, you will be even more effective.
American's Big Solution - The FAIRtax Primer America Needs
Hard to believe but there still are people who have not heard of The FAIRtax. For those people, America’s Big Solution provides a starting point in their study of The FAIRtax and is meant for any age.
America’s Big Solution is an introduction to The FAIRtax written by Terry Tibbetts, author of “A Spartan Game: The Life and Loss of Don Holleder”, with help from Ron Maiellaro, President The Florida FAIRtax Educational Association. You can buy an electronic version for only $2.99 for the Amazon Kindle, the Barnes & Noble Nook and Apple iOS. You can purchase a print copy at the same Amazon link above for $9.25.
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Thank you for staying FAIRtax strong!
Yours In Liberty!
Chairman, Americans For Fair Taxation
Help FAIRtax Become The Number One Issue in 2021
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