Proposal: Social Security and Federal Budget Reform Plan for 2026

 

Proposal: Social Security and Federal Budget Reform Plan for 2026

Fixing Social Security: A Transparent, Worker-Powered Plan

June 29, 2025

Social Security’s Old-Age trust fund faces depletion by 2033, slashing benefits 23-25% (~$16,500/year for retirees), per CBO 2024. Medicare’s Part A follows by 2036. Congress has stalled for 40 years. Our plan makes employees the heart of a fair, transparent system, securing Social Security and Medicare for today and tomorrow.

The Plan in a Nutshell

1. Employee-Paid Taxes, Fully Transparent: Employees pay the full 16% payroll tax (14% Social Security [OASI, DI, SSI], 2% Medicare Part A) on wages up to $250K (up from $168,600). Employers add the former employer share (7.65%) to wages, so workers’ take-home pay stays the same. Pay stubs and W-2s show “SSA/Medicare: $X, your contribution,” making benefits clear as day.

2. Self-Employed Fairness: Self-employed pay the same 16% on net earnings up to $250K (vs. 15.3% today), with equal benefits and no penalty for switching to/from employment. They deduct half (8%) as a business expense.

3. Stabilize Now: 14% SSA and $250K cap push Social Security solvency to 2045; 2% Medicare, plus 10-15% healthcare savings ($100-150B/year by 2035), secures Part A to 2040+.

4. Standalone System: SSA/Medicare operates separately, funded by the 16% tax, not mixed with federal spending.

5. Hybrid Investment Fund (HSIF): Workers can opt to divert 2% of their 14% SSA tax to a personal HSIF account (40% Treasuries, 30% infrastructure bonds, 30% equities, 5.5% returns). PAYGO funds retirees; HSIF grows future benefits, with a safety floor ensuring no loss. Default opt-in (opt-out via SSA app/HR) starts with new workers, expands to all by 2036.

Why It Works

• Solves the Crisis: Covers ~80% of SSA’s shortfall; HSIF’s $1-2T pool (50% opt-in) funds 35-45% of benefits by 2050.

• Transparent & Fair: Employees see their 16% as earned benefits; self-employed get parity.

• Empowering: HSIF choice adds ~$350/month (e.g., $1,000/year grows to $70,000 over 30 years). Gamified SSA app makes saving fun!

• Bipartisan: Market-based HSIF for conservatives, safety net for liberals, jobs via infrastructure.

Take Action Share this to fix Social Security! Tell Congress: make it transparent, make it fair. #SocialSecurityReform #WorkerPower

Word Count: ~330 | Learn more: [SSA.gov placeholder]

 

Curtis Neil 06/29/2025