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News Section: Serial Reporting



Special Series: Social Security - Part 4: A New Face for the Future

Published Saturday, May 28, 2011 2:15 am

Social Security – A New Face for the Future

Part 4 of a 5 Part Series (click here to go to part 1)

America who are you, where are you going, how will you get there, and who will you be when you arrive?  America is the GI Generation, born between 1900 - 1925; the Silent Generation, 1926 - 1945; the Baby Boomer, 1946-1964; the Generation X-rs, 1965 - 1981; the Millennial Generation, 1982 - 2001, and the Futuristic Generation, born after 2002. Each generation possesses unique attributes including but not limited to: experiences, knowledge, creativity, enthusiasm, youth, and a passion for a better tomorrow.

Each different in their own unique way, yet so alike in sharing the bond that binds us all - "we are Americans", and the American dream is not reserved for a privileged class of Americans, but a guaranteed privilege for every class of Americans. So, let the challenges of today awaken us, the opportunities of tomorrow inspire us, and our future successes validate us. Pack your bags America; "We the People" are taking you to places you've never been before.

The AmeriCareToday or ACT plan puts a new face on Social Security for each of the aforementioned generations by promoting an intra-generational merger based on mutually beneficial goals. The first is “securing today”, meaning current Social Security retirees have their Social Security retirement benefits fully funded without revision until the day they expire. The second is “unlocking tomorrow”, meaning a new retirement account for millions of average working Americans whose paychecks are subject to Social Security taxation, and a brighter future for those who haven’t reached the voting age, by turning current general revenue fund retirement liabilities into contingent liabilities over time. Here’s a brief recap of what has been covered in the three previous articles

It would do us all well to remind ourselves of an Albert Einstein quote: “The significant problems of the day cannot be solved at the same level of thinking we were at when we created them”. Join me in an outside the box look at the Social Security issue by pulling the chute on your gray matter, and opening your mind to a new way of thinking when it comes to the Social Security issue. Outside the box thinking has led to the development of the ACT proposal; a 10-point comprehensive 35-year community-based, constitutionally-grounded solution that begins restoring middle class working Americans, their families and the communities they call home. The ACT plan puts a new face on Social Security; a new twist on an old lemon if you will.
 
The ACT Plan:  

1. Creates an intra-generational alliance that begins to bring together each generation for the greater good of all current and future generations.  Through an intra-generational alliance, current retiree obligations are fully funded without revision until the day the retiree expires, and current workers whose paychecks are subject to a Social Security tax, are rewarded with a new portable retirement account that they own, funded with current dollars – both parties win.

2. Broadens the Social Security funding base, and entirely eliminates the current Social Security wage cap. The ACT plan establishes an annual base line assessment or BLA for funding the social security retiree funding obligation. The BLA is based on a percent relationship between the gross domestic product or GDP (total of all goods produced and services provided in US in one year), and the annual Social Security retiree funding obligation. Over the past five years, the GDP increased from $13.39 trillion in 2006 to $14.6 trillion in 2010.  During the same period annual Social Security retiree obligations grew from $442 billion in 2006 to an annual rate of $582 billion in 2010. The BLA is based on the percent of the GDP it would take to fund the Social Security retiree obligation. If the ACT plan were in effect in 2010, the percent of GDP necessary to fund the social security retiree obligation would have been 4 percent. Under the ACT plan this is the BLA that would have been paid by the Plumber, the President, and the CEO, vs. the current 12.4 percent contribution paid only by those workers who make less than $106,800. Any funding voids would be addressed by a progressive BLA above a certain income level.

3. Manages new (operative word) Social Security retiree obligations by reducing new (operative word) Social Security retiree obligations at the rate of 2.857% for every year a new (operative word) Social Security retiree is away from full retirement. This rate of reduction means new (operative word) Social Security retiree obligations are completely phased out at the end of the 35th year. To demonstrate, if you’re one year away from full retirement and your Social Security check would have been $1,000 a month, under the ACT plan it would be reduced by 2.857% or $28.57 cents. You would receive $1,000 minus $28.57 or $971.43 a month in Social Security retiree benefits.  For a person who’s 5 years from full retirement, the SS benefit would be reduced by five times the 2.857% figure. The BLA will adjust annually to reflect the relationship between Social Security retiree obligations and the GDP.


4. Under the ACT plan millions of retirement dollars that currently flow out of communities and end up being spent for something other than intended, will never leave local communities. The difference between the current 12.4% Social Security currently receives for every dollar earned up to $106,800 annually, and the new base line assessment or BLA of approximately 4% (2010) are diverted to local member owned Community Investment Pods or CIPs.  A Community Investment Pod or CIP is no different and could be an already existing member owned community credit union. Each of the 3,140 counties and/or parishes across the United States will have at least one CIP designated as an official repository for workers retirement funds.


5. Creates new Individual Community Investment Retirement Accounts or ICIRAs for millions of average working. Americans whose current paycheck is subject to Social Security taxation. The ICIRA is owned by the worker, and it’s portable, and it’s funded by the difference between the current 12.4 percent Social Security tax contribution, and the annual base line assessment or BLA. Had the ACT plan been in effect in 2010, millions of average working Americans would have been contributing 8.4 percent to their Individual Community Investment Retirement Account or ICIRA. (12.4 current Social Security contribution up to $106,800, minus the BLA of 4 percent, equals an 8.4 percent contribution).


6. Establishes a new source for funding local bonding needs, such as schools, bridges, roads, etc. (Wall Street banksters; no longer needed). When local real estate owners or business owners write their real estate tax checks the money no longer flows outside the community to pay back some wall street bankster who has purchased the bonds, the tax money stays in the local community, flowing right back into the local Community Investment Pod or CIP, and once again credited to the workers Individual Community Investment Retirement Account or ICIRA, and once again becomes available for funding additional local bonding requirements.


7. Makes middle class working Americans, equity partners in the economic activity of their respective communities. The ACT plan once again connects the dots between the resident of their respective communities and their communities. In effect offering pride of ownership for every worker residing in the community knowing their retirement dollars are being used to fund the bridge, the road, the school right there where they reside. As local bonds are repaid through local taxes, local residents are benefiting from growth in their Individual Community Investment Retirement Accounts, or ICIRAs.

Next week we’ll show you how: (A) the worker’s new Individual Community Investment Retirement Accounts or ICIRAs are insured against catastrophic losses. (B) How a 2.6 trillion dollar general revenue fund retirement liability is turned into a 2.6 trillion dollar contingent liability over time. (C) How the ACT plan puts in place main street checks and balances, shielding your elected representatives from lobbyist, and protects “we the people’s interests. In the meantime, get involved by joining our daily conversation at “The Government Can” radio show; 9am (eastern) every weekday morning. It’s your voice and until you raise it, no one hears it. Also you may contact Jim directly at jgries1@tampabay.rr.com.

 

Read Part 5

Join the conversation post Facebook comments here or on our site at the bottom of article.

 

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Non-Facebook Comments:


This is some significant "out of the box" thinking. I find it most attractive to develop a plan that keeps the money out of the hands of the federal governmen which has proven that it cannot resist spending everything it gets its hands on and instead invest the money locally.
Posted by Dick Olson on May 29, 2011
 

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