Home > Uncategorized > Should Libertarians Accept Social Security? by Laurence M. Vance

Should Libertarians Accept Social Security? by Laurence M. Vance

In his recent appearance on MSNBC’s “Morning Joe,” Representative Ron Paul was asked by Sam Stein of the Huffington Post whether he was going to set a good example for younger Americans and opt out of Social Security.

COUNCIL BLUFFS, IA - DECEMBER 29:  Republican ...

COUNCIL BLUFFS, IA – DECEMBER 29: Republican presidential hopeful U.S. Rep Ron Paul (R-TX) speaks during a town hall meeting at the Mid-America Center on December 29, 2011 in Council Bluffs, Iowa. With less than one week to go before the Iowa caucuses, Ron Paul continues to campaign through Iowa. (Image credit: Getty Images via @daylife)

As a libertarian and a constitutionalist, Congressman Paul recognizes that Social Security is an insolvent, unsustainable, unconstitutional welfare scheme. Although he wants younger workers to be given the opportunity to opt out of the system as we make a humanitarian transition away from the dependency of Social Security, when asked by Stein if he was on Social Security, Paul acknowledged that he was and saw no inconsistency in receiving benefits.

Social Security is properly a federal Old-Age, Survivors, and Disability Insurance (OASDI) program. It provides benefits for retirement, disability, survivorship, and death to about 55 million Americans at a price to approximately 157 million taxpayers of more than $800 billion a year. It is “funded” by payroll tax deductions from both employers (6.2%) and employees (4.2%) on a taxable wage base of $110,100. One must pay Social Security taxes for a minimum of forty quarters to be eligible for benefits, which are figured based on the average of a worker’s thirty-five highest years of earnings (up to particular year’s wage base), adjusted for inflation.

Social Security is the most expensive item in the federal budget. For years it generated more in tax revenue than it spent on benefits. However, since 2010, the system has run a deficit that is projected to increase every year as more and more baby-boomers retire.

The truth about Social Security is no secret. It is a relic from the New Deal. It is the cornerstone of the welfare state. There is no trust fund. There is no retirement account in the name of each taxpayer. Social Security is an intergenerational wealth-transfer program.

But does this mean that libertarians should not accept Social Security?

EXCERPT

via Should Libertarians Accept Social Security? by Laurence M. Vance.

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