The report indicates that 2012 Medicare benefits and social security totaled $ 1.323 trillion, but at the Medicare premiums, payroll taxes and other related fees totaled $ 920 billion thus leading to a deficit of $ 403 billion. Social security had a deficit of $ 160 billion while Medicare had a deficit of $ 243 thus meaning that the Treasury had to finance the deficit. Surprisingly, the deficit represents about 37 per cent of the overall federal deficit thus implying that social security is doing more harm to the overall growth of the US economy.
Indeed, all actuaries agree that all contributions such as Medicare fees, payroll taxes and other fees will have to increase in order to meet the high deficit in the future or squeezing some programs and even cutting the social security benefits. Social security should be made voluntary because private investments guarantee freedom and liberty. Through controlling the amount of money that individuals will earn at their retirement amounts to controlling their liberty and life. Citizens have no opportunity of controlling the 12.4 percent of the deductions from their salaries.
Accordingly, social security is unconstitutional since no constitutional provision that mandates the government to confiscate money from the working employees in order to distribute it back upon retirement. Although the 16th amendment grants the federal government the rights to collect income taxes, it does not provide for the collection of retirement contributions on top of the real income taxes. Social security deductions are responsible for the lack of savings and investments when people retire from employment. In addition, going by private investment returns in the financial market, it is imprudent to pay 12.4 percent of your entire employment life income and expect a return of 10 percent upon retirement.
Although some people may argue that employees only contribute 6.2 percent of their payroll taxes, this is ridiculous since employers are forced to make a contribution of 6.2 percent thus denying the employee money that could be aggregated in their salary.
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