Means Testing and SS

The Internet starts to show some life in the debate of Social Security Means-Testing, and Everyone reading this Author regularly knows I am not afraid to jump off the Deep-end of the Pool. I have come up with yet another potential method to correct the imbalance of the Social Security Fund. First, one needs to study the demographics of the SS system, though, else Many will achieve a misconception as to the system. The System, as originally designed, implicitly utilized the Mortality or Death rate in its conception; no one believing then or since that the System could afford to pay Everyone who had paid in full benefits. Call this the Mortician's dilemma (similar to the Prisoner's dilemma--just more morbid). The System would work and pay for itself, if and only if enough Insured died before funds were oversourced.

What has happened? Medicine has brought on the Mortician's dilemma, People are not only living to draw SS benefits, but they are living to draw benefits for a unheard of time previously. Many have been the Calls: extend the Minimum Age which one would need to start drawing benefits, restrict Payments to only Those who need it, and cut benefits so that the social insurance is insufficient anyway. Along comes lgl, with an indecent Proposal.

Build in automatic Means Testing, square in the basic component of the System?--How?

Alteration of the Mandate: simply stating all Participants will be Means tested throughout the history of their life. All Participants will be taxed at their current assessments, not even have the level of taxation upon their Income raised. The Change would come in the acquired equity of the Insured. Each Participant will be charged $3500 per $100,000 worth of equity he or she attains; said assessment by request of Insured would be drawn from SS Withholding, or can be paid in lump sum to the Social Security Administration. Failure to pay this SS assessment will delay receipt of Benefits until the assessed amount equals the lost monthly Benefits from delayed receipt of Benefits.

What have We gained?
No one pay on the first $100,000 of equity. Those with more than $100,000 in equity must pay $3500, until they have equity of $200k, where they will pay $7k. One million dollars in equity will cost the Insured $31,500 in added SS tax. The Tax continues to add up to $ infinity, until such time as the Wealthy Insured finds no benefit from the SS system; but they still have to pay the base tax. The SS Fund deficit suddenly disappears, and Everyone other than the Insured are happy. lgl