That would screw retirees, hard.
Taxed to the max during all their income-earning years, they retire on much smaller incomes, just in time to walk face-first into a VAT/NRST tax calculated to support the entire weight of the Government, on top of their state sales taxes, which is imposed on every dollar they spend for their subsistence.
That's a retirement tax designed by sadists.
Taxed to the max during all their income-earning years, they retire on much smaller incomes, just in time to walk face-first into a VAT/NRST tax calculated to support the entire weight of the Government, on top of their state sales taxes, which is imposed on every dollar they spend for their subsistence.
No VAT, that's surely ridiculous.
Yours is a static analysis, I think. You left out the part where we distributed the assets to social security contributors, who are the rightful creditors of SS, which is the senior creditor supporting the federal ponzi scheme. Also you left out the part where we reduced the size of FedGov.
And what is the alternative you propose? Retirees will get screwed eventually.