Quote:
Originally Posted by Whitley
Perhaps we are looking for a better, fairer way. Perhaps a flat income that starts at a certain income?
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Any unwinding of SS/Medicare would have to take into account those older folks that have been paying into it all those years. They would have to be allowed to continue on that, while younger folks would be allowed to keep some or all of what they would now pay into SS. It would require a tax to fund all of those still on the old system, until they passed and were off of it. And taxes later on to pay for those that did not earn enough/did not plan well in the form of welfare/Medicaid.
As for a flat tax, the way to address would be to allow a certain amount of income to be exempt, say the first $40,000 of household income, $10,000 per family member, etc. After that, all income is taxed at say, 10%. No mortgage deduction, no property tax deductions, no SALT deduction. That would probably require a phase out as well.
None of this is easy. But the long term benefit to the country of getting rid of such government programs would pay benefits to our children and grandchildren down the road.