Social Security can and must be fixed
Social Security, established in 1935, under Franklin Roosevelt, has never been an actuarially sound program
The program’s current configuration can be fixed by eliminating the limit upon which the earnings are subject to taxation as was done, years ago, for the Medicare program.
In addition, all earnings, both earned and passive income should be subject to this 12.4% income tax.
Revenue is generated, for Medicare, by assessing a 1.45% tax on the wages of employees, without limit, with another 1.45% paid by their employers.
Medicare can be repaired by assessing the 2.9% tax to all income, including passive income, such as capital gains, interest, dividends, interest, royalties, and rents.
Waste and fraud, in both programs, must be mitigated.
July 21, 2011