Friday, December 3, 2010

Here is something that I sent to the President in 1983.

January 27, 1983

The President
The White House
Washington, D.C. 20500 

Dear Mr. President: 

I would like to offer you my suggestion for the reform of Social Security and Taxes.  First, let me describe the program without any of the problems of changing over from the present social security system to my proposed one. This proposed deferred income plan is designed to provide income in retirement years, survivor’s income, and income for those periods when the wage earner is unable to work due to disability or periods of economic unemployment. Each employer and employee would contribute 10% of wages (20% total) to a special income (interest, dividend, etc.) earning accounts (investments held in the wage earners name by private financial organizations, banks, mutual funds, etc.) .The maximum wages subject to the 10% contributions would be 10 times the minimum wage. (The minimum wage to be set at the estimated cost of a family of four at a moderate standard of living for one year. This total cost would be divided by 2080 annual work hours to obtain an hourly rate.) The contributions would be included in income when computing Federal, State and local income tax. (See tax plan below.) The payments from the account to the wage earner and survivors would be free from Federal, State, and local tax.