James Goetz (R)
While, in principle, I sympathize with any idea that will improve asset management of Social Security funds, I do not think that any of the current proposals represent a workable solution.
We have reached a point that substantial reform is necessary. In brief, I feel that the following reforms are needed:
- Replace the FICA and Medicare payroll taxes with a broad-based consumption tax. The elimination of the regressive and predatory payroll taxes would provide middle and low income families with an additional 10% pre-tax income ( FICA and Medicare are double taxed under the current income tax rules) Each family would then have the choice to save for their retirement. I think that this would meet the real intent of Gov. Bush's proposal.
- Remove the Health Care Finance Agency from HSS and merge it with the Social Security Administration into an independent agency focused on service to seniors.
- Eliminate General Fund financing of Medicare and fund both Social Security and Medicare from a single trust fund
- Resist reductions in benefits to seniors under Social Security and Medicare
- Reorganize Medicare along the lines of best medical practice including preventative care and prescription drugs. Eliminate the on-going bureaucratic war between medicare and the health care industry by focusing on using competitive market forces to eliminate the "bad" and costly health care providers.
- Establish an effective trust fund asset management structure. Such a fund should be isolated from the general treasury fund and follow the best industry investment practices. In 1998, the Social Security achieved a whopping 7.2% Return on Investment (ROI). In contrast, the 172.2 billion dollar California Public Employees Retirement Fund (CALPERS) achieved a 16 % ROI in 1999.