Individual Social Security

Have you ever wondered what America would be like if Income Taxes were NOT the main source of revenue used to finance our State and Federal Government, or if Social Security could be provided without taxing wages? What would your life be like if you were able to spend 100% of your income on your family and both you and your spouse could save for retirement?

It's time to replace the antiquated practice of collecting taxes from income every year with one that is designed for the 21st century! A tax plan that will take advantage of technology, the power of investing in American business and saving for retirement!
This concept "Life Without Income Taxes" would:

Provide money to:

Pay for health care.
• Buy a home.
• Send our children to college.
• Give to charities.
• Investment in business.
• Buy U.S. Government Bonds and T-Bills.
• Finance home loans.

It will:
1. Lower Individual Income Taxes to Zero.
2. Lower Employment Taxes to 2%.
3. Lower State Income Taxes to Zero.
4. Lower Corporation Taxes to Zero.
5. Lower Estate and Excise Taxes to Zero.
6. Give retirees more money each month than Social Security.
7. Allow “stay at home” moms to have a retirement account.
8. Raise the minimum wage.
9. Lower the trade deficit.
10. Simplify the IRS tax code.
11. Lower the cost of goods and services.


This is how it works:

1. Individuals would save 5% of their income each year in their own Individual Retirement Account. (IRA)

2. At retirement, the assets in your account will be converted to income producing instruments that will pay interest only payments each month. The principal is never spent and is left in the account until death.

3. After death the assets in the account are converted to cash and paid to the U.S. Treasury.
After 40 years, with all Americans participating, this concept would generate more income to the U.S. Treasury than the present Individual Income Tax system. The "Tax" would not be collected until the death of both husband and wife, leaving both retirement accounts for the use of the surviving spouse.


How would this concept be phased in and what effect would it have on revenue going to the U.S. Treasury?

1. Individuals would pay into their self-directed account allocated to the State in which they live. There could be multiple States’ in a person’s retirement account. The assets in each State account, after the death of both husband and wife, would be used to lower State Income Tax rates to ZERO. A percentage based on the population of the State would be paid to the Federal government and would lower income, employment and corporate tax rates to ZERO. After these taxes are replaced by the retirement savings accounts, only constitutionally enumerated programs will be funded by the States. Money left in the State accounts could go to fund medicaid/medicare health care insurance for the State or reduce property taxes.

2. Young people would be allowed to opt out of the retirement part of Social Security (disability would still be provided) and 2.5% of their employment tax would go to their self directed retirement account.

3. Employers would be encouraged to contribute $1,000 to each employee's spouses’ IRA each year in exchange for a two for one tax credit. This would have the effect of lowering business/corporate tax rates from 25% to 15% which will stimulate the economy, create jobs, and lower the cost of goods and services.

4. Income tax rates would be reduced .25% to start and would increase to .5% in the later years of the 40 year phase-in period as the unused retirement savings accounts replace taxes on income.

5. Employment Taxes would be the last tax to be reduced because of the "One Life Time" lag of replacing social security retirement benefits with Individual Retirement Accounts.

6. Existing Individual Retirement Accounts could be converted to this concept if desired.

7. Social Security retirement benefits would be pro-rated by ratio of years payments were made into the Social Security system vs. payments into retirement accounts with a guarantee that combined retirement income will be no less than Social Security retirement.

8. Because all individuals will have a retirement account, married retirees will have the benefit of two retirement incomes. (Estimated income for a couple will be greater than $10,000 per month) This income will be generated by retirees converting some of their “working years” investments from the stock market to mortgage backed securities which will finance the homes of young people. This monthly income will give the economy a big boost and will allow retirees to pay for increasing medical bills caused by old age or a $100,000 hip replacement could be paid for in one year. The income will NOT be taken away when one spouse dies. It will continue until the death of BOTH husband and wife. If this money is not needed for medical bills, just think of all of the good things that can be done with the money; going out to dinner, taking vacations, giving to charities, helping our children/grandchildren.

please visit www.NoTaxUntilDeath.com

Don Lloyd, concept author