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S.O.S (Saving Our Social Security)

April 11, 2024

What will we do when seniors can't pay bills or even buy food?  How would you feel about seeing more homeless seniors on the streets? The obvious problem of an imbalance of wealth for some and not others in our country grows daily.  Rather than working together, we tend to polarize and blame one group for the other's discontent. The current Social Security system and many others will not work for these reasons.  

We must develop a solution that helps people help themselves, tax the rich, and share the wealth and business opportunities with all.  We need to help the poor save and the wealthy to spend.  

We have an idea to avoid a bad outcome. We call it “Save Our Social Security” or “SOS”. This new "Save our Social Security" plan provides older low-income Americans protection from poverty, the middle class an opportunity to increase their retirement income benefits, and older wealthy people an incentive to pay more Social Security taxes and opt out of the Social Security Income program in retirement altogether.

Is America ready for a self-sustaining Social Security Program?  Don't we need a program that helps people in need more?  A government-sponsored retirement plan the middle class can access? A program supported by the wealthy who willingly pay more taxes?  It serves all wealth levels without guilt, entitlement, or anger toward others.

Wouldn’t it be great if Americans could look at their Social Security retirement program as an actual investment for their future, not a future tax for the Government?  What if you could get a tax deduction for paying Social Security taxes and, in later years, receive income tax-free?  We could be encouraged to pay more than required and earn more income in late retirement.

Taxes have a purpose!  Too many taxes stifle the growth of an economy, however.  Imagine an older person cashes out their 401k or IRA plan in late retirement.  The government would receive a lot of taxes, and less money would be available for the retiree to spend and put back into the economy.  Currently, we pay the taxes and let the government decide where to spend our money.  A more efficient program would be to free up more cash at all income levels and allow the overall economy to benefit from our spending at our level, not the government's.  A lower tax rate for retirement distributions and zero tax on Social Security benefits would help the retiree and the economy.


A Brief History Of Social Security:

Though Social Security began in the 1930’s the fundamentals of this system changed in the 1950s. Benefits expanded significantly and became universal. In 1965, Social Security began offering Medicare and Medicaid to low-income and elderly Americans.

Social Security benefits were expanded again in the 1970s to benefit disabled people of all ages.

The Government made the last adjustment in 1983 To cover benefits and enhance the Trust fund, which is currently at risk.  Social Security income became taxable in 1984 at 50% of the payment within a threshold and increased the taxable benefit to 85% in 1993.

In 1940, Social Security income benefits were slightly over $20 monthly1. Today the average payment is about $1,800 and the high-earners can receive more than $50,000 each year. 

Where will many elderly Americans be in the future as inflation raises living costs?  We already have a homeless crisis and immigrants expecting government income and services.  What's next? 

Will the government commit to fixing the Social Security Trust Fund's current and future risks?  Will politicians decide our retirement? 

Social Security Tax revenue has fallen short of expenses since 2010 2.  Since then, the administration has used Social Security Trust fund interest to supplement beneficiary payments.  They used the trust fund's principal starting in 2021 to meet demand.  Given the decrease in Social Security earnings under Covid and beyond, some experts anticipate the funds may run out by 2033 3.

Major cities nationwide suffer from poverty, homelessness, and street crime.  What happens when more older persons apply for Social Security and discover their monthly income is insufficient to cover rising costs?  How will we handle fewer workers who don't pay Social Security taxes post-COVID?  

How about the millions of migrants who will pressure the Government and Social Security system?  Finally, what about the upcoming Social Security possibility that will automatically reduce everyone's monthly income by around 25% by 2033?3 The Social Security Administration was established in 1935 to safeguard "at least some" elderly pensioners.  In addition, it helped disabled persons and minor children of deceased parents.

Most persons over 65 receive Social Security payments, representing about 60% of their retirement income.

CALCULATING MONTHLY INCOME BENEFITS

Taxes paid into the program for the worker’s future benefits:

6.2% - Social Security tax (employee contribution)

6.2 % Employer contribution (Social Security tax)

Use top 35 years of income + inflation rate calculator + / 420

*This computation uses the 35-year Average Indexed Monthly Earnings (AMIE).  Lower-income earners receive relatively more significant payments than tax contributions; higher taxpayers receive less compensation than taxes paid.  This calculation benefits low-wage retirees the most.4 

The cost of living allowance (COLA) makes Social Security benefits more expensive.  In 2021, benefits were increased by 1.3%, and benefits increased in 2022 by 5.9%. 5  A year before, analysts predicted the Trust Fund's collapse.

The 2020 Social Security program gave 65 million people about one trillion dollars.  Employees and employers pay 12.4% Social Security taxes on earnings up to $160,000.00, more substantial in subsequent years.  Self-employed people must pay both sides of the tax based on their net income, not including a 2.9% Medicare tax. 6  If we keep taxing small businesses, what will happen to them?   At what tax rate will a company cease to survive? Some People think the world would be a better, less expensive place to live if the rich were no longer here - but this isn’t true. Did you know that the rich positively contribute to the economy for all the classes - keep reading to find out how.

Save Our Social Security AKA SOS:

Our new plan, "Save Our Social Security," protects older low-income Americans from poverty, increases retirement income benefits for the middle class, and encourages older wealthy people to pay more taxes and opt out of Social Security in retirement.  They would pay Social Security taxes at all income levels.  Supporting those paying more Social Security taxes in exchange for a future tax advantage could significantly increase the resources needed to meet our current and future obligations.  Allowing tax deductions for taxes paid and additional investment contributions made into the Social Security Trust fund will help all those who participate.  As a recipient's monthly income is received tax-free or traded for tax credits, it allows money to move around our beloved economy, raising much-needed financial activity at all levels of income and economic status.

Before preserving one of the nation’s most expensive entitlements, let's agree on why Social Security should survive.  Most Americans need all the income sources they can get for their retirement.  Bad luck or poor retirement preparation, Americans need help.  No one wants more people on our streets, so let's find a solution.  There is no blaming for those who failed or punishment for those who succeeded in later life.  Not one that expels successful enterprises to tax havens and business-friendly nations. We need all-size businesses to support our country.  Our idea will be controversial and require calculations and facts from the “experts.”

Let’s use the discussed hypotheticals and ask government economists and the Congressional Budget Office to calculate the implied results.  This new plan is an idea that needs several revisions and adjustments.  

This new SOS plan would reduce the number of recipients requiring recurring income and increase employee income tax levels and voluntary contributions to the Social Security Trust Fund. Would employees and employers pay more Social Security taxes to improve their future income or reduce their future taxes?

It's simple: In this plan, the government helps low-income recipients develop significant buying power while offering middle- and upper-income taxpayers higher-income or tax-benefit options.

This plan may seem too good to be true. Still, lower-income Americans can receive greater buying power and income through government-negotiated discounts for consumer goods, discounted rents, mortgage payments, professional services, and medical services.

With voluntary and tax-deductible contributions, middle-class Americans can increase their lifetime tax-free retirement income.

The highest-income earners pay taxes on all levels of earned income but receive future tax credits in exchange.

They can receive higher Social Security income at retirement tax-free or use their earned tax credits in exchange, which would reduce or eliminate taxes on significant withdrawals from their private retirement plans,  selling stocks,  a business, or real estate in late retirement.  Paying Social Security taxes can be used to offset future income and capital gains taxes.  The program gets more funded and fairer along the way. 

More Information on This Plan:

This SOS plan would increase long-term beneficiary funding.  The “life-only” option could significantly raise the recipient's income for life, share it with a surviving spouse, and, in some situations, pay for a disabled dependent's life using the decedent's benefits. Like the current program, the recipient only receives revenue while alive; this is why this works.  If they die, however, the Social Security trust fund will keep their income and contributions to assist living beneficiaries.

There is a socialist basis of the program for the low-income recipient balanced with the top half of a capitalist philosophy program urging high-income earners to contribute more to the program through taxes while working and recapture taxes paid through the tax credit while retired.  This strategy lets a free-market society compete and prosper while protecting the less fortunate.

But WHY Do We Need Help?

Baby boomers are retiring in large numbers and living longer and some experts predict the Social Security Trust fund will run out of adequate tax revenue before 2033.3 That would reduce benefits to 75% of what was promised (Interest earned on reserve cash is lost as reserves fall).

Most pension plans rely on currently working non-retirees paying into the program.  Growing asset values in existing plan assets is another source.  The Social Security Trust fund, however, will have no investment surplus.  The Trust fund will keep collecting taxes and paying benefits.

The worst-case situation could occur with more retirees qualifying for income and living longer.  What will we do if this horror story happens?  Who'll save us?

Suppose past law shows how politicians would handle this issue.  In that event, recipients will receive less retirement income and be required to wait longer for benefits.  Some with higher-than-government-acceptable income from a lifetime of struggle, saving, investing, and planning may lose their benefits altogether, and the younger working class may have their tax rates raised but receive fewer benefits. 

Work hard, take risks, and invest in your firm, business, stocks, real estate, etc.

Our plan would allow the high earners to pay more outstanding Social Security taxes over their working years but can obtain a full tax credit in their retirement years to recoup those payments.  They get tax-free Social Security income if their business or investments fail.  If they succeed, they can use their tax credits, which become available at 75, to keep more of their assets and retirement programs after liquidation or selling them.

Our plan encourages high-income earners to opt-out of receiving the Social Security income they paid for and convert their contributions into tax credits in exchange for their actual Social Security income. This plan relieves the Social Security Administration's obligation to pay out this person’s social security income.

Today, after investing regularly in retirement planning, these outstanding Americans are taxed on their Social Security income and threatened with losing their income benefits if "means testing" is implemented. They have worked ethically, taken risks, and sacrificed all their lives to create a successful retirement, only to be vilified.

There are proposals to increase social security taxes, state taxes, federal taxes, and the "Net investment Income tax" on investment income for high-income earners. These taxes may sound fair but discourage small businesses, real estate investors, and extensive company & stock investors from taking investment risks.

The Government simply cannot do it all; we have all seen country after country experiment with government-run programs that control all forms of business.    A snake can not survive by eating its tail.  We need freedom and independence for every American to make their way.

Let’s cover one of the many uncanny ways we currently tax older Americans' non-retirement plan investments, which have appreciated significantly over time. 

SOS Plan Example:

If an investor held real estate rental properties for decades and sold them at retirement, their value could have risen significantly.

Current tax laws state that if the investor sells the property, they can only avoid taxes by buying another property and transferring the tax cost basis. 7 However, the new property taxes, real estate commission, and cost of the property sold could be devastating. 

The second option is to donate the property to a charitable trust and hope to receive taxable income after the charity sells the asset capital gains tax-free.8  Although the donor gets income while living, the charity keeps the property and income when they die.  The family loses the property and the payments.

The third and last option is to sell the property and pay capital gains taxes. Federal capital gains (plus depreciation recapture), state capital gains or income tax in many states, and the 3.8% "Net Investment Income Tax" could severely diminish proceeds.9  Neither option appeals to the ordinary retired investor.  Why lose half your gains to taxes and fees? So why sell at all?

So, after decades of maintaining properties with stress, cash flow issues, and legal concerns, the senior investor must pay outrageously high taxes to sell.  Why would they sell their investment?  Under present tax law, why would any investor sell an appreciated asset after years of "sweet and tears" and "dread and fears"?  These taxes could reach the depreciated basis for Federal, State, and Net Investment Income taxes.  With these endless taxes, retirees tend to keep their rentals till death.  

By not selling this investment, such assets have almost no financial activity.  The original owners pay low property taxes in many states until a new buyer takes control.  By not selling, there are no capital gains taxes assessed, no taxable real estate sales commissions, no title company transactions, notary fees, property inspections, appraisals, property repair, no building supplies from the local hardware store, no taxable contracts or fees for repairs, painting, real estate advertisements, movers, or real estate sales commissions on the buyer's old property sold. 

When a property is sold and transacted, all these services, products, and fees are triggered, stimulating local and global economies, buyer property tax increases, and local, state, and federal capital and income taxes benefit all of us.

Consider the economics "Six Degrees of Separation".  Like the stock market, stocks are bought and sold periodically, providing a recordable value, transaction fees, price spreads, taxable revenue, and other costs benefiting us all.

If investors can buy and sell their real estate properties during their lifetimes with less taxes, the local government tax rolls and economy might grow tremendously along the way. 

Currently, older investors who sacrificed decades to buy dangerous investments must pay high taxes all at once to sell.   

After years of supporting the economy with property taxes, repairs, maintenance fees, property insurance, property management fees, and rental income taxes, the investor must hold the asset until death or lose a significant amount to taxes.     However, the beneficiaries of that same real estate property could sell it the day after this older investor dies and obtain a “Step up in Basis,”  Meaning they pay no capital gains taxes.   

An added tax called the “Net Investment Income Tax,” 9 is an excessive capital gains tax that punishes the successful older investor for years of investments for the rest of their lives if they sell a property with significant gains.  But again, beneficiaries get all the profit tax-free.  Is this reasonable?

We could cancel the beneficiaries' "Step Up in Basis." loophole. However, beneficiaries would have to pay significant taxes if they sold the family property, causing them to hold and not sell it.  Why not benefit all parties on both sides of the transaction? In our plan, the Social Securities Trust Fund reserves can grow significantly and, if managed properly, can last for generations.  

With a very restrictive start date for the tax credit exchange, one could plan to take the tax credits at age 75, discounted if elected at a younger age.  This new plan uses tax credits to eliminate or reduce income and capital gains taxes for successful senior investors.   Therefore, they can afford to opt-out of taking Social Security income, leaving more Social Security trust fund resources on the table for others and have more freedom to sell during their lifetime.

The current plan is proving very costly to the Social Security program, with Americans living longer, especially those with healthier lifestyles.  We plan to get the wealthy to move money around using their deferred Social Security Tax Credits, stimulating the economy.   The middle class can accumulate and keep more after-tax income in retirement.

Detailed Breakdown:

Let’s break this plan down further.  Imagine a pyramid with the most significant part at the bottom, the smaller center, and the tiniest part at the top.  The lowest income earner is at the bottom of our Pyramid.  The Pyramid's midsection is moderate-income, and the top is high-income and so-called “rich people.”  Let's observe how each participant level contributes to the new Social Security program and receives more peace of mind, fairness, and investment opportunities.

Benefits for Level 1 - Low-Income Earners:

Level One is to help low-income earners reduce “RIP” (retirement income poverty). It's like a government-run entitlement program.  However, the recipient has worked a lifetime and earned the benefits.  It substantially increases buying power and protection from mismanagement, fraud, and unwanted intrusions.

Don't worry—the other two options are less government-intrusive.

The poorest Social Security recipients may need additional help avoiding fraud, cybercrime, greedy family members, and incapacity to manage their benefits.  We must step up as a society to help these individuals receive food and rent without someone exploiting them.  How about letting capitalism help?

Surely Elon Musk, Jeff Bezos, Mark Zuckerberg, Bill Gates, and others can help us with this proposal—a way to use Social Security benefits securely and freely.  The plan would require self-identification to secure beneficial financial transactions, like an unhackable face recognition program.

The lowest-income seniors would receive more resources than their monthly Social Security cash payout.  The beneficiary or their registered caregiver would receive these products and services through a government-issued photo ID card or facial recognition software with more spending power than their former income.  The beneficiary or legal representative would register for the card and app at their local Social Security Office or designated government facility.

Instead of carrying cash, low-income Social Security card users can use these cards or phone apps, minimizing mistakes or crime. They will be able to check their balance online, on their phone, or at the checkout stand, like a gift card or a banking app.

Recipients can use their Social Security debit card or other approved security device to charge groceries, bus fares, Uber, Lift, petrol, rent, utility bills, and more at government-authorized and regulated local businesses.  Like grocery establishments with alcohol, spray paint, cigarette sales, and welfare EBT cards, the company must follow strict regulatory processes and fiduciary rules to qualify as a vendor or service provider. These stores must offer cardholder discounts.   These government rebates are passed on to cardholders and would boost vendor sales and services.  The cardholder or representative gets more products and services with these significant discounts. This activity would increase the buying power of the social security income they receive.

Imagine landlords soliciting Social Security recipients to rent their properties.  The landlords would know the rent will be paid, and government-negotiated discounts would provide lower-cost housing to increase occupancy. The government can grant landlords Social Security housing tax advantages based on rent reductions and occupancy levels.  Builders and developers may be encouraged to mix Social Security beneficiaries communities with high-income complexes.  Here, low-cost housing includes working-class retirees and a few higher-income tenants—a reverse integration.  Wealthier tenants pay greater rent and live among lower-income taxpayers who worked for their benefits and now can afford better housing.

Investors might fund this housing initiative attractive using rents, upfront tax rebates, and depreciation and maintenance are deductions, which are attractive just as low-cost housing investment partnerships do today.

This new Social Security card also secures medical and personal data.  The card can list prior health checks, tests, physicians' recommendations, medications, family-trusted contact files, and notes for hospitalization or police aid.

Maximum income benefits and unused balances are monitored to improve the program and protect the user.  The Government monitors users' charging history to safeguard consumers and give vendors purchase statistics to improve products and services.

More people in this program buying approved goods and services means more significant savings for consumers and more business for vendors.

Government-partnered businesses are monitored for fair pricing and buying statistics.  Subject to a few constraints, cardholders might be allowed to contribute personal savings or inheritance to increase their income and still receive government discounts at participating stores and service providers.

Credit card firms and banks track cardholders' financial actions and records to avoid fraud.  Here, social security recipients are more government-dependent and protected.  Family, friends, merchants, and the government defend them from thievery and misuse—similar to Adult Protective Services today. Vendors will pay for these high-tech security measures.  Federal criminal statutes would protect recipients and the Social Security Trust Fund from fraud and theft.

Naturally, a few Americans would beta-test these programs to develop them and find bugs before implementation. At the same time, implementing the plan, beneficiaries, however, can opt-out and stay in the old existing program if desired.

To recap:

  • We significantly increased goods, services, and rent discounts.
  • We boosted participants' financial security and protection.
  • We fostered local retailers and enterprises to thrive and grow while helping lower-income earners.
  • We raised taxes on the wealthy so monthly benefits and the Social Security trust fund could grow significantly while encouraging business growth and increasing activity.                                                                                                                

Benefits for Level 2 - Moderate Earners:

Level Two provides genuine retirement income relief for moderate earners.  The middle class tends to do “all the work” in our society.  They also pay the most taxes, preventing them from starting businesses and making profitable investments. Starting families while experiencing inflation and AI threats,  the middle class needs to be able to go about their lives, take business risks, and raise their children without the fear of poverty in retirement.   Without generational wealth from inheritances or wealthy parents' money for college and advanced degrees, their options for retirement can become limited.  If their employer is bought out, fails, or reduces employment rolls with AI or robots, changes in careers and trades could be very costly.  Using their savings and accumulated retirement funds to survive after a layoff can eliminate any hope for a healthy retirement. 

This part of our plan gives the person a “second chance” to secure retirement income.  They could reorganize their life and sell items they no longer need or want.  Even selling an extra vehicle, boat, rental, or small business would add to their Social Security benefits balance. People could even invest an inheritance to buy into the program and increase their future Social Security income.

The added dollars can grow tax-free and provide a higher lifetime tax-free income benefit. This is similar to a self-funded life annuity.  

By joining this supplemental part of the Social Security program, the nation's oldest pension, one can boost retirement income by making additional voluntary and tax-deductible payments.  They can minimize their taxable income while working by making these tax-deductible contributions to the plan. At the same time, they may have a reduced tax rate in retirement since Social Security income would be tax-free.  Transferring additional savings into one's personal Social account fund increases one's level of tax-free retirement income.  They could also roll over IRAs, deferred compensation plans, 401ks, tax-sheltered annuities, and other retirement assets into this new Social Security "life only" pension benefit annuity.  Since they already deducted. These contributions, and transferred retirement plans do not allow further tax deductions. This program is like an irrevocable retirement insurance annuity.  It can be added to any time during the recipient's lifetime, increasing future income benefits.  The benefit is tax-free as lifetime income when received.

Tax-deductible contributions help the recipient reduce income taxes while still working and consolidating resources by buying into this legitimate massive Government-sponsored annuity.   This secure annuity is designed only for the recipient's lifetime income and benefit, not an insurance company. No brokers earning commissions, company earning spreads and interest on “other people's money,” or stockholders receiving dividends—just income for the surviving recipients.

As mentioned, this strategy would increase long-term revenue for the beneficiary.  A life-only option would significantly enhance the recipient/investor's lifetime income. Like the current program, the recipient/investor only receives revenue while alive.  If the taxpayer dies, Social Security will keep the extra income earned and their contributions.  These dollars fund the retirement of living income recipients who “ live too long.”

As the member makes additional regular or lump sum contributions before and after retirement, they collect interest on their voluntary contributions.   Income benefits increase with these contributions, like a retail insurance annuity, but tax-free.  The government will function as a large wholesale insurance business or contract with several sizable outside insurance companies.

We've all heard of "retirement buybacks," 10 and our plan is similar. Doing so significantly increases the recipient's scheduled pension benefit when they retire. This concept can work like a defined benefit pension plan because it is a group annuity plan like Social Security.

The recipient's future earned income benefits increase with contributions.

Contributions gain tax deductions when added to the Social Security income program. Traditional outside retirement plans can be rolled over to the program, converting the balances to more monthly income like a pension plan but non-taxable when received as income.

However, the benefits stop at the primary recipient or surviving spouse's death.

"You live off other people's money," or vice versa; living a healthier lifestyle pays.


Benefits for Level 3 - High-Income Earners:

Level Three is exciting for high-income earners because it benefits those who have paid the most into Social Security taxes but do not need their retirement income payments in retirement. A program of tax incentives encourages older recipients to "opt-out" of receiving their Social Security income benefits.

These selections allow the taxpayer to pay Social Security taxes in exchange for tax credits in one lump sum or over any time frame during retirement.

We calculate all the Social Security taxes paid at all income levels and over a lifetime. Next, attach a small interest rate of growth on the taxpayers' lifetime balances; one could even grow their tax credits for future use.

At retirement (or discounted in earlier years), this tax credit exchange program could benefit taxpayers who want to liquidate private retirement plans or investments,  especially in their later years, and reduce or eliminate taxes.

If we can get these older recipients to stretch out the date on which they would receive a benefit and exchange that income for tax credits, several positive things can happen here. One, the recipient might die before even receiving their tax benefit. Sounds terrible, but true.  For example, if they were required to wait until age seventy-five or eighty, they might pass by then. However, their motivation would be to live as long as possible, allowing more time to grow their assets.   A substantial part of a financial plan can be developed by trading tax credits instead of receiving social security payment during their remaining lifetime, reducing loss to taxes. 

Just think about it.  You only really own two-thirds of your taxable retirement plans; the government owns the rest through future income taxes.11 You will pay fifteen percent or more of capital gains taxes on your gain from high-risk non-retirement plan investments like real estate, businesses, or stocks, not including some state's income tax and the net investment income tax.

Reselling investments like real estate generates taxable income for the US Treasury and many states through capital gains taxes, taxing broker's sales commissions, inspection fees, title insurance fees, and contractor services. This plan benefits the US Treasury by encouraging wealthy investors to sell their properties and move their money around, benefiting vendors, professionals, and taxing authorities. Economic benefits are created by selling businesses, stocks, funds, etc.

As much as we might want to blame the Wealthy for having more, this plan gains more tax revenue and participation from them. The more money they make, the more the social security system gains. They must sell some of their accumulated assets to benefit from the tax credits. They are even encouraged to liquidate taxable retirement money. Either way, they wait many years longer before starting the "tax credit" exchange program, not to mention an unavoidable tax on all levels of pre-retirement work-related income going into the Social Security program.  So, to get any of their Social Security taxes back, they must sell and liquidate many of their retirement investment portfolios and non-retirement investments, helping everyone.  The extra Social Security taxes paid become an investment in their future tax plan.

Just imagine how a program that benefits the low-income recipient and payer as well. Let’s review, what if the taxpayer paid Social Security taxes on all income levels while working? At an advanced age, they could use Social Security tax credits to cash out of otherwise taxable retirement plans and sell appreciated real estate, businesses, and securities like stocks, mutual funds, and ETFs. Even if they lost their wealth at an advanced age, they could sell the tax credits earned, re-establish a private retirement plan, or opt back into the Social Security program with higher tax-free income.


Conclusion

This plan is theoretical only, without facts, statistics, studies and trials.  We still need the efforts of Government analysts, economists, mathematicians, financial theorists, financial advisors, Social Security specialists, and many more agencies and professionals to make this plan work. Making changes may be a long and very difficult process considering the many factors that will go into making such a large shift.  Similar to several layers of paint on a very old house.   Some will disagree with our plan, even those who adamantly and violently oppose it. Taxing more but possibly returning those dollars through tax credits or higher income will likely run into headwinds. It threatens Government officials who want to control all of us.  Let's ask our government to look into this innovative and fair system.

Think about it.  What if we could create a balanced Social Security Fund?  What if we could restrict irresponsible spending and giveaways if this plan is successful?  Will politicians continue giving our money away?   Can we stop the “death of our system”?

In this plan we “tax the wealthy” but give them an out with the tax credits.  We want them to “spend, baby spend!”  And put more money in the economy, not holding investments to avoid taxes.


If we embrace that some people need our help and others need their space, a complete plan to meet everyone's needs is possible.  Imagine capitalism is welcomed and encouraged for the benefit of all.  We need people and investors to grow and survive independently, experience success, and pay their taxes.  Freedom is our biggest American asset. Imagine a world where we all receive all taxes we pay back as tax-free retirement income, credits, or other refunds.  What if taxes were a loan to our country, not an obligation?  Let's all work together.   

Call To Action:

Share this plan with your family, friends, and representatives.  Remember, you will be a recipient someday; years from now, where will the program be then?  Do you want to eat cat food?  Contact your local representative and request that they consider a plan like this.  Social Security will either be broken or, with this plan, become a working part of our society at all levels of need.

For your personal retirement planning needs visit us at www.hunterwilliambailey.com and download the free book 'Active Retirement Investing ' for investors, clients, and advisers.

For questions, contact Hunter William “Bill” Bailey at HUNTER.BAILEY@securitiesamerica.com or call (916)863-1266

*YouTube video by CNBC provides more information and other options for social security reform. Video can be found Here.

*This article gives thoughts and ideas that are in no way related to Securities America. This information is not to be construed as tax advice, Investment advice, legal advice, or otherwise.

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*Tax and legal advice (third-party reprints) - Securities America and its representatives do not give tax or legal advice. Securities America does not represent the accuracy or completeness of any information in these materials or the effectiveness of any suggestion or recommendation made to achieve any specific tax or other financial planning goal. This material is provided for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must consult with and rely solely upon their independent advisors regarding their particular situation and the concepts presented here.


Works Cited

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2 “The Real Story on Social Security Deficits-2016-11-08.” Committee for a Responsible Federal Budget, 8 November 2016, https://www.crfb.org/blogs/real-story-social-security-deficits. Accessed 9 April 2024.

3 Paul, Trina. “Will Social Security Run Out? Here's What You Need To Know.” CNBC, 2023, https://www.cnbc.com/select/will-social-security-run-out-heres-what-you-need-to-know/. Accessed 9 April 2024.

4 Asset Group, Smart. “Social Security Calculator (2024) - Estimate Your Benefits.” SmartAsset, Unknown, https://smartasset.com/retirement/social-security-calculator#J8kAQ4mkC. Accessed 9 April 2024.

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6 Sigalos, Mackenzie. “How Social Security Works.” YouTube, uploaded by CNBC, November 17 2020. https://www.youtube.com/watch?v=kW1Lk0_j1Pg&list=PLHuZwuw-XAutkxt52Xj6O54g40xWo_xkn&index=1

7 Crace, Miranda. “Capital Gains Tax On Real Estate: A Guide.” Rocket Mortgage, 2024, https://www.rocketmortgage.com/learn/capital-gains-home-sale. Accessed 9 April 2024.

8 Real Estate With Causes. “California Real Estate Donation to Charity - Donate Property.” Real Estate with Causes, Unknown, https://realestatewithcauses.org/california-real-estate-donations/. Accessed 9 April 2024.

9 Tzanetos, Georgina, and Mercedes Barba. “What Is The Net Investment Income Tax And Who Has To Pay It?” Bankrate, 8 February 2024, https://www.bankrate.com/investing/net-investment-income-tax-niit/. Accessed 9 April 2024.

10 U.S. Office of Personnel Management. “Federal Retirement.” OPM, Unknown, https://www.opm.gov/fedshirevets/current-veteran-employees/federal-retirement/. Accessed 9 April 2024.

11 Berry, Janet. “Future Income Taxes: What They are, How They Work.” Investopedia, 2020, https://www.investopedia.com/terms/f/futureincometax.asp. Accessed 9 April 2024.

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