"That if anyone is not willing to work, neither should he eat." (2 Thessalonians 3:10) Social Security should be abolished, and should be replaced by a voluntary insurance system with incentives for individuals to provide for their own financial futures. No one today argues with the statement that the Social Security system has major problems. It is known that sometime around the year 2037, the "cushion" of money in Social Security will be exhausted and it will return to a pay-as-you-go system, where taxed revenues will be used to support recipients of the program directly. It will not mean that Social Security is bankrupt, but it will be susceptible to catastrophic, unforeseen events. On a pay-as-you-go system, all funds are paid out. If there is a mass influx of new claims, or a major event where new benefits will be paid out, there may not be enough tax revenue to cover all the expenses. Any deficit will have to come from other sources such as the General Fund, or some other agency's budget. Social Security's main problems are: it is compulsory, it is unfair to younger workers, and it decreases the amount of money available to invest in savings and individual retirement plans.
Social Security is a compulsory tax event. This means that every worker, with few exceptions, has to pay into this fund. Employers also pay matching amounts into this fund. The inequities are in the discrepancies in the amount paid, both into the program and by the program. Higher paid workers pay proportionally higher amounts into the system. However, these same workers are much more likely to participate and provide for their own retirement and health benefits. Most of this group contributes to some kind of voluntary retirement plan, such as a pension, 401K, 403A, or 403B tax deferred savings plan. When these workers retire, they will have a primary source of retirement income from one of these sources and subsequently receive lesser Social Security payments.
