I am 86 years old and in January 2015. “Obama Care cost me $58/mo. Because my Blue Cross went up $696/yr. Congress has done little for the or retired citizens who have worked all their lives paying into SSM and receiving COLA increases that are almost, or in some cases, completely consumed by the Medicare increases causing less SSM take-home income less than the previous year. I am on a very tight budget with fixed income.
If SSM is to survive for future retirees then I believe the following should be implemented. I have an idea that would increase the take-home pay for all working citizens without any increase in taxation on their gross income and completely fund SSM at the same time.
(1) Establish a 1% National SSM Sales Tax and reduce the FICA taken from workers pay checks, employers, and self-employed.
Exclude all Home Sales & Purchases from this tax.
The sales tax is to be used only for SSM and no other use.
(2) Make the sales tax high enough to give the retired seniors a decent COLA increase along with medical benefits and stop taxing SSM. When Bill Clinton was President he raised the tax on SSM by “Means Testing” ones income from 50% to 85% and moving this 50%/85% of SSM into ordinary income causing a person to pay another tax on a tax. I believe this is against the law to double tax.
The sales tax would capture the underground economy, all illegal activities, tourists, moonlighters, illegal residents, and everyone who purchase taxable items.
It would also stimulate the economy by giving the workers a greater take-home pay and the employer would also have a larger cash reserve. This would give everyone an increase in their take home pay.
The SSM tax revenue would be enormous plus the reduced FICA that is still being collected would be more than enough to fund SSM and a medical plan for all American Citizens.
Bert A. Birch
118 Currant Lane
Vacaville, CA 95687-3122
P.S. I know that sales tax is a regressive tax but what tax isn’t? A 1% to 2% tax seems reasonable. The extra 1% could be used as a Sunset” Tax to pay down the National Debt and eliminated when the National Debt is paid.