Fix Social Security
The Purple Fix — Thanks, Professor Kotlikoff!
- Those already collecting Social Security are grandfathered.
- Those scheduled to collect receive all benefits accrued under the current system.
- No additional benefit accrual. The old system is frozen.
- The FICA tax is gradually phased out.
- Adoption of the Personal Security System (PSS).
- Workers contribute 10 percent of pay to PSS accounts.
- Half of married couples' combined PSS contributions is allocated to each spouse's account.
- Government makes matching contributions on behalf of low earners, the disabled, and the unemployed.
- All PSS balances are invested identically, by a computer, not Wall Street, in a weighted index of global stocks, bonds, and other traded financial securities.
- The Government guarantees at least a zero real (after-inflation) return. No one loses their contributions, adjusted for inflation.
- Between 57 and 67, each birth cohort's PSS balances are used to purchase Treasury Inflation-Protected Securities (TIPS).
- Each cohorts' TIPS assets are used to pay cohort members inflation-indexed life annuities that begin at 62 and are fully phased in by 67. Your PSS annuities are based solely on your accumulated PSS contributions.
- Die before 67? Your heirs inherit all PSS balances not yet converted to TIPS.
The PSS System
a. Is Fully funded
b. Is Progressive
c. Is Fair to non-working or lower-earning spouses
d. Provides all participants the same annual returns on their PSS balances
e. Is run by a single laptop -- no commissions/fees/spreads to Wall Street
d. Provides inflation-protected benefits that continue as long as you live
f. Is a modern version of Social Security
g. Maintains current disability system
h. Will include real annuities paid to survivors of deceased workers.
i. Phases out our outrageously complex and insolvent -- $62 trillion in the red -- current Social Security system.
Steve will propose this plan to Congress.
Background
Social Security is America's most cherished public policy. But the system is in grave financial trouble that can no longer be ignored. Indeed, Social Security is in worse financial shape now than in 1983 when the Greenspan Commission "fixed" the system's finances. According to the Social Security Trustees (see Table VIFI of the 2022 Trustees Report), the system is underfunded by $61 trillion! Covering this shortfall requires an immediate and permanent 4.5 percentage point increase in the current 12.4 percent employer-employee 12.4 percent payroll tax. That's a 36 percent hike! Alternatively, benefits must be cut, immediately and permanently, by 27 percent.
Social Security's problems extend far beyond its finances. The system is incredibly complex. It's Handbook's has 2728 complex rules and its Program Operating Manual has thousands of even more complex rules to explain the Handbook's rules. As a result, many of the system's key features are virtually incomprehensible. In addition, these thousands of rules produce very major inequities and inefficiencies. Thanks to the system's byzantine rules, millions of workers pay Social Security taxes year after year and end up with no extra benefits. Indeed, they can end up with lower benefits than people who never work. And when no one understands what they are getting back for their extra Social Security taxes, they can easily decide that working has a much smaller payoff than is actually the case.
It's time to fix Social Security from the ground up without sacrificing its key objectives.
Social Security is America's most cherished public policy. But the system is in grave financial trouble that can no longer be ignored. Indeed, Social Security is in worse financial shape now than in 1983 when the Greenspan Commission "fixed" the system's finances. According to the Social Security Trustees (see Table VIFI of the 2022 Trustees Report), the system is underfunded by $61 trillion! Covering this shortfall requires an immediate and permanent 4.5 percentage point increase in the current 12.4 percent employer-employee 12.4 percent payroll tax. That's a 36 percent hike! Alternatively, benefits must be cut, immediately and permanently, by 27 percent.
Social Security's problems extend far beyond its finances. The system is incredibly complex. It's Handbook's has 2728 complex rules and its Program Operating Manual has thousands of even more complex rules to explain the Handbook's rules. As a result, many of the system's key features are virtually incomprehensible. In addition, these thousands of rules produce very major inequities and inefficiencies. Thanks to the system's byzantine rules, millions of workers pay Social Security taxes year after year and end up with no extra benefits. Indeed, they can end up with lower benefits than people who never work. And when no one understands what they are getting back for their extra Social Security taxes, they can easily decide that working has a much smaller payoff than is actually the case.
It's time to fix Social Security from the ground up without sacrificing its key objectives.
Stop Transferring Wealth to China
“Never in history has a Communist country become a democracy by trading with them.”
America's trade relationship with Communist China has hurt Americans' wages.
It has allowed China to build up its military as it works to supplant America as the world's superpower.
It has cost Americans millions of jobs.
It has not led to democracy, or respect for intellectual property, or bestowed human rights on individuals
in China, but instead, merely continued more Communist Chinese government oppression of its people.
It has made worse America's budget deficit.
It has allowed China to build up its military as it works to supplant America as the world's superpower.
It has cost Americans millions of jobs.
It has not led to democracy, or respect for intellectual property, or bestowed human rights on individuals
in China, but instead, merely continued more Communist Chinese government oppression of its people.
It has made worse America's budget deficit.
Why are we still trading with Communist China?
Fix the Federal Reserve
Protectors of Bankers & Enablers of Congress
Creators of great inequality of wealth — killing the middle class
- The Federal Reserve's mandate should be changed and limited to the sole task of managing the money supply to target inflation at 0%.
- This will force Congress to operate within its budget, so that it will no longer be able to depend on the Fed bailing it out.
- Our national debt will finally be reigned in, and Congress's habit of passing initiatives for which there is no money, will stop.
"Change the Fed to be an ally of average Americans."
Laffey wants a strong dollar & market rates.
Stop Corruption in Federal Government
"Biggest fraud in a generation: The looting of the Covid relief plan known as PPP"
- The official in charge of Covid relief said “...programs like PPP were structured in ways that were an invitation to fraudsters.”
- The SBA’s Inspector General, and the Secret Service have identified from $80 to $100 billion in potentially fraudulent Economic Injury Disaster Loans.
- Those who truly needed the loans didn't get them. Those who didn't need them, bought Lamborghinis, Ferraris and Bentleys!
- Yet, not a single Republican voted against it - NOT A SINGLE ONE!
Laffey will stop this corruption.
"Federal officials trade stock in companies their agencies oversee!" — WSJ
- Federal agency officials wield “immense power and influence over things that impact the day-to-day lives of everyday Americans, such as public health and food safety, diplomatic relations and regulating trade.”
- 1 in 5 officials in the Treasury, the Fed, SEC, IRS, Defense Department, EPA, HHS, Interior and others invested in stocks of the very firms lobbying their agencies!
- Some officials traded just ahead of regulatory actions, were significant big tech investors, or made large & risky trades — including short selling and options trading.
- Ethics lawyer at the U.S. agency that oversees conflict-of-interest rules states, "[these stock trades] clearly violate the spirit behind the law, which is to maintain the public’s confidence in the integrity of the government.”
Laffey will stop these conflicts of interest.
Make the Tax Code Fair and Simple
A New Tax System Herman Cain's "9•9•9" Plan
Why Do You Think It Was So Popular?!
Why Do You Think It Was So Popular?!
Because it works...."You know, Steve, it's really half a fair tax, and half a flat tax." Why do you think they took my friend, Herman Cain, out of the race? |
Herman Cain
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The elites couldn't have something so simple, so fair, — partly a wealth tax, and doing away with the 60,000 pages of nonsense their buddies take advantage of.
Why is no one going to propose it now? Too risky for the insiders, not popular with the elites. They saw what happened to Herman Cain!
Why is no one going to propose it now? Too risky for the insiders, not popular with the elites. They saw what happened to Herman Cain!
Fix Our Educational System
“Hey, Teacher, leave our kids alone!”
- Public schools are broken beyond repair; they need to be replaced with a system of choice for parents.
- We have to commit, right now, to getting every kid out of the public schools. A check needs to be sent to every family so children can finally learn unencumbered by onerous, abysmal, misguided education standards.
