Social Security Benefit Enhancements
Subcommittee on Social Security, Hearing on Protecting and Improving Social Security: Benefit Enhancements March 13, 2019, 2:00 PM
Like yesterday’s comments, our submission today is based on two elements of our four-part approach to tax reform, the employee contribution to Old Age and Survivors Insurance and our Net Business Receipts/Subtraction Value Added Tax. Attachment One contains this discussion. Attachment Two reprises our discussion on employee-ownership, with the following paragraphs pulled forward.
NBRT/SVAT collections, which tax both labor and profit, will be set high enough to fund employee-ownership and payment of current beneficiaries. All employees would be credited with the same monthly contribution, regardless of wage. The employer contribution to Old Age and Survivors Insurance will continue to provide income sensitive payments to current retirees, which will bolster the political acceptance of the entire system.
Employee-ownership is the ultimate protection for worker wages. Our proposal for expanding it involves diverting an every-increasing portion of the employer-contribution to the Old Age and Survivors fund to a combination of employer voting stock and an insurance fund holding the stock of all similar companies.
Using the NBRT/SVAT is superior to using payroll taxes because there is no ceiling to the amount collected to fund current retirees. Increasing the rate to expand the portion of the tax allows the expansion of benefits to current retirees. Employee-Ownership provides an incentive to workers to innovate and thus produce higher earnings for the firm, which will also expand retirement benefits.
Like yesterday’s comments, our submission today is based on two elements of our four-part approach to tax reform, the employee contribution to Old Age and Survivors Insurance and our Net Business Receipts/Subtraction Value Added Tax. Attachment One contains this discussion. Attachment Two reprises our discussion on employee-ownership, with the following paragraphs pulled forward.
NBRT/SVAT collections, which tax both labor and profit, will be set high enough to fund employee-ownership and payment of current beneficiaries. All employees would be credited with the same monthly contribution, regardless of wage. The employer contribution to Old Age and Survivors Insurance will continue to provide income sensitive payments to current retirees, which will bolster the political acceptance of the entire system.
Employee-ownership is the ultimate protection for worker wages. Our proposal for expanding it involves diverting an every-increasing portion of the employer-contribution to the Old Age and Survivors fund to a combination of employer voting stock and an insurance fund holding the stock of all similar companies.
Using the NBRT/SVAT is superior to using payroll taxes because there is no ceiling to the amount collected to fund current retirees. Increasing the rate to expand the portion of the tax allows the expansion of benefits to current retirees. Employee-Ownership provides an incentive to workers to innovate and thus produce higher earnings for the firm, which will also expand retirement benefits.
posted by Michael Bindner at 2:00 PM
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