The Social Security Fix: by - SaltCay Enterprises Inc.

An Open Letter to President Obama, 
I know you won’t be officially our president for a couple of more days, but in my mind you had to start working early and working for free. I wonder if the nation understands that you have already begun sacrificing. You might as well have the title because you are already doing the job.  

My idea for social security or rather for fixing social security permanently is so simple I actually toyed with the idea of copyrighting it. However, this issue is so important for the future of this country I don’t want a road block to inhibit my solutions ability to permeate the process.   Besides, you are already sacrificing, so I figure I can offer up an idea without reciprocal credit or compensation. I also know that if this idea is ever picked up by the politicians it will go through so many iterations it will all most probably be unrecognizable by the time it is implemented. So our choices are don’t speak up or do nothing and watch things get worse or join the dialog and be part of the process. Who knows, maybe this will help turn the tide.
 
How can you cut taxes and fix Social Security in a time of unprecedented recession or depression?  How can you preserve the entitlements so important to the future of Americans? It’s simple, but let’s review what the employment tax burden is today. In 2009 the cap in earnings for SS is now $106,000 and an employee’s burden is caped out at $6572 of SS taxes paid. If you’re lucky enough to make more than $106,000 all the money you make after $106,000 is free of SS tax. This is not a very fair tax to the working “lower middle” class.  If you are self employed you are subject to the "employer" portion of the tax and don’t forget that 7.65% includes the Medicare potion of the tax. Further, as a self employed person you face a total combined burden 15.3%, and don’t forget that Medicare is not subject to any salary cap. And that’s a quick review of the challenges.    

I propose that you initiate legislation to eliminate the cap on SS and reduce the overall burden as it pertains only to the Social Security tax. I propose to you that the employee and employer burden be reduced to 2.75% for employees and 2.75% for employers. The middle class gets an immediate 3.45% tax break and people making more that $106,000 won’t see paying in today’s maximum until they reach approximately $238,000. 238000 x 2.75% = $6545.00. Very close to that campaign promise of only affecting tax increases on people making over $250,000. Of course people who make huge amounts of money will continue to pay SS tax on every dollar they make. I'll guess that they won't be happy. I figure it will take two to seven years after implementation to sure up Social Security with this plan.  Finally, don’t allow the politicians access to the Social Security fund. It is ear marked for the future, not a safety net, nor to fund the flavor of week pork program or for wars.   Please don’t let them privatize Social Security and it would be a good idea to payback (with interest) the money already taken! Let me know if I can be of any help.

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