Why Government Doesn't Work: on Social Security


SSI tax has risen from 2% to 15% & will continue to rise

The Social Security tax has risen from a combined employer-employee rate of 2% in 1935 to today’s combined tax of 15.3%. And there’s no reason to believe the tax rate won’t continue to rise. As administered by politicians, Social Security is inherently unworkable, because the politicians always spend the money they take in. As the retired population grows, it requires higher taxes to pay the benefits the politicians have promised.
Most people think Congress would never renege on its promises to Social Security recipients-no matter how bad federal finances become. But when the only alternative is to raise the Social Security tax rate to 35% or 40%-or to cut off food stamps to the poor-there may be no choice but to cut Social Security benefits.
Millions of people depend on Social Security today. They worked for decades. Their plans assumed that Social Security would provide for them when they retired. I believe these people must be taken care of. But I don’t trust the government to do it.
Source: Why Government Doesn’t Work, by H. Browne, p.162-3 Jul 2, 1995

One-time pay off of all people over 50, with means testing

The government should buy from a private insurance company an annuity for everyone who depends on Social Security. The annuities should provide lifetime incomes similar to what Social Security has promised. I estimate the cost to be roughly $5 trillion.
Annuities should be provided only for those who truly need them. This means some kind of simple, non-intrusive means test must be applied to each retiree. Those that don’t rely on Social Security shouldn’t aggravate the problem further. The maximum monthly Social Security benefit is $1,100; there are many retired people to whom that isn’t a critical amount.
People over the age of 50 who are nearing retirement and who have made plans based on receiving Social Security should also receive annuities. Those annuities would be smaller and wouldn’t begin paying out until age 65.
And what about those under 50? To them we offer the greatest gift possible: You will never again have to pay the 15% Social Security tax.
Source: Why Government Doesn’t Work, by H. Browne, p.167-8 Jul 2, 1995

  • The above quotations are from Why Government Doesn't Work: How Reducing Government Will Bring Us Safer Cities Better Schools, by Harry Browne.
  • Click here for definitions & background information on Social Security.
  • Click here for other issues (main summary page).
  • Click here for more quotes by Harry Browne on Social Security.
2016 Presidential contenders on Social Security:
  Republicans:
Gov.Jeb Bush(FL)
Dr.Ben Carson(MD)
Gov.Chris Christie(NJ)
Sen.Ted Cruz(TX)
Carly Fiorina(CA)
Gov.Jim Gilmore(VA)
Sen.Lindsey Graham(SC)
Gov.Mike Huckabee(AR)
Gov.Bobby Jindal(LA)
Gov.John Kasich(OH)
Gov.Sarah Palin(AK)
Gov.George Pataki(NY)
Sen.Rand Paul(KY)
Gov.Rick Perry(TX)
Sen.Rob Portman(OH)
Sen.Marco Rubio(FL)
Sen.Rick Santorum(PA)
Donald Trump(NY)
Gov.Scott Walker(WI) 		Democrats:
Gov.Lincoln Chafee(RI)
Secy.Hillary Clinton(NY)
V.P.Joe Biden(DE)
Gov.Martin O`Malley(MD)
Sen.Bernie Sanders(VT)
Sen.Elizabeth Warren(MA)
Sen.Jim Webb(VA)

2016 Third Party Candidates:
Gov.Gary Johnson(L-NM)
Roseanne Barr(PF-HI)
Robert Steele(L-NY)
Dr.Jill Stein(G,MA)
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Page last updated: Feb 26, 2019