Posted by: Debby Durkee | February 8, 2010

How to make U.S. solvent.

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How to make the U.S. solvent.

George Will has looked at Congressman Paul Ryan’s (R-MN) “Roadmap for America’s Future,” his plan to revive the economy, tackle entitlement spending and health care reform. There is much to like in this plan, and Will has condensed it into a readable form. This is from http://www.realclearpolitics.com:

Funding entitlements — especially medical care and pensions for the elderly — requires reinvigorating the economy. Ryan’s map connects three destinations — economic vitality, diminished public debt, and health and retirement security.

To make the economy — on which all else hinges — hum, Ryan proposes tax reform.

Masochists would be permitted to continue paying income taxes under the current system. Others could use a radically simplified code, filing a form that fits on a postcard. It would have just two rates: 10 percent on incomes up to $100,000 for joint filers and $50,000 for single filers; 25 percent on higher incomes. There would be no deductions, credits or exclusions, other than the health care tax credit (see below).  Snip –

Ryan would eliminate taxes on interest, capital gains, dividends and death. The corporate income tax, the world’s second highest, would be replaced by an 8.5 percent business consumption tax. Because this would be about half the average tax burden that other nations place on corporations, U.S. companies would instantly become more competitive — and more able and eager to hire.

Medicare and Social Security would be preserved for those currently receiving benefits, or becoming eligible in the next 10 years (those 55 and older today). Both programs would be made permanently solvent.

Universal access to affordable health care would be guaranteed by refundable tax credits ($2,300 for individuals, $5,700 for families) for purchasing portable coverage in any state. As persons under 55 became Medicare eligible, they would receive payments averaging $11,000 a year, indexed to inflation and pegged to income, with low-income people receiving more support.

Ryan’s plan would fund medical savings accounts from which low-income people would pay minor out-of-pocket medical expenses. All Americans, regardless of income, would be allowed to establish MSAs — tax-preferred accounts for paying such expenses.

Ryan’s plan would allow workers under 55 the choice of investing more than one-third of their current Social Security taxes in personal retirement accounts similar to the Thrift Savings Plan long available to, and immensely popular with, federal employees. This investment would be inheritable property, guaranteeing that individuals will never lose the ability to dispose every dollar they put into these accounts.

Ryan would raise the retirement age. If, when Congress created Social Security in 1935, it had indexed the retirement age (then 65) to life expectancy, today the age would be in the mid-70s. The system was never intended to do what it is doing — subsidizing retirements that extend from one-third to one-half of retirees’ adult lives.

This is a well-thought out and understandable plan, and for the current president to basically tell Republicans to go take a hike because he doesn’t like the private sector way of fixing things is all you need to know about Barack Obama. It’s not that he wants the legacy of creating universal health care in the United States, something progressives have wanted for 100 years. He wants his version of universal health care, which will allow Obama and his progressives to control 1/6 of the economy and to stay in power – basically having the power of life and death over every American. Read it all here:

http://www.realclearpolitics.com/articles/2010/02/07/charting_our_way_to_solvency_100195.html

 

Klavan: Reality v. culture.

This is a great, four-minute video by Andrew Klavan of Pajamas TV. He does a regular spot for PJTV on the culture. This one in particular is excellent. He shows the reality of certain situations and then compares that to how Hollywood portrays them. Well done.

http://www.pjtv.com/v/3008

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Responses

  1. I think that the government should take the SS taxes of each individual and allow them to place it in an untouchable acct. ( untouchable that includes the greedy congress) and allow the individual to use it at retirement. ( 65 ) If the recepitant dies before hand it would go to the nearest kin!! Oh my!! What would the greedy slime balls in Washington do then??

  2. I agree with you, Bob. I think Ryan’s idea of taking 1/3 of the taxes of 55 year olds and under and placing them into a personal retirement account (untouchable and inheritable) is all he can do right now until Social Security can be made solvent for those still withdrawing from it.

    “What would the greedy slime balls in Washington do then?” Good question…they wouldn’t have the funds to steal and use for other purposes would they? Many of those thieves are dead and buried. Let’s hope they’re paying in the afterlife.

  3. Great Article! This looks like Mr. Ryan is interested in having a political future. I think what he has outlined is a good start in changing the direction of government but it misses a key item and that is the growth of government’s involvement in our daily life particularly in government employment.

  4. That will be part 2, hopefully!!


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