Entitlements
The present system is structured like a pyramid scheme and is therefore unsustainable. The government has incurred $53 trillion in unfunded liabilities under the present Social Security and Medicare systems. There is no way to meet those obligations but our leaders refuse to face it. It is better to do something now to mitigate losses, than to do nothing and have the system completely fail those who need it most. My plan for entitlement reform would focus on the following points:
-Provide present benefits, except the recent drug prescription program, to those that have paid into the system for at least 80 quarters. Everyone else who has paid in for less than 80 quarters would have their contributions plus 4% accumulated interest transferred to a tax-free health savings account and a tax-free retirement account.
-Eliminate all taxes on Social Security benefits.
-Current Social Security/Medicare taxes would be deposited in tax-free IRAs and HSAs.
Since each person would own their account, it would ensure the government never looted our nation's retirement again.