Sunday, May 12, 2013
"New America" proposes buttressing Social Security with VAT, other means; would it be means-tested? A new look at the "social contract"
The New America Foundation has been talking about a new “social contract” to provide more sustainable rearing of the young and care for the elderly. It sounds interesting to me that it uses the term in a policy context, rather than one of implicit individual obligation. But one of its ideas is to use a European-style VAT (value added tax) to buttress a strictly means-tested component of social security, adding on to personal savings (401(k)) and private pension, both of which are waning.
The most recent policy paper is here.
In the Washington Post, columnist Matt Miller spoke about this in a column “15000 Dow and a retirement crisis ahead”, link here.
New America has another paper more specific in about Social Security, “Expanded Social Security:A Plan to Increase Retirement Security for All Americans”, by Matthew Lind, Steven Hill, Robert Hiltonsmith, and Joshua Freedman, April 2013, link here.
Steven Hill also has another paper on his own site on Obama’s proposal to use chained CPI’s: He stresses portability, and the funding by reducing more tax benefits for the rich as well as VAT sources, here.
Steven Hill and Andy Coates have a one hour presentation on Social Security on YouTine:
This does sound a bit like European “socialism”. What about longer life spans and lower birth rates?