PAY AS YOU GO TO PAY NO MO’: A PROPOSAL FOR AN ENDOWMENT BASED SYSTEM OF SOCIAL SECURITY

Abstract I will propose that Social Security be transformed from a “pay as you go” system to an endowment based system. The benefits of such a system, if designed correctly, are that social security pay roll taxes will be eliminated (an effective “pay hike” for taxpayers), the system will not face crippling solvency issues, and Social Security will be “here to stay” for the foreseeable future. There are certainly some potential negatives to an endowment based system of Social Security, and those will be highlighted as well. I also review some background history on Social Security programs in the United States. . I also review some background history on Social Security programs in the United States.