A "well, duh, why didn't I think of that?" moment, courtesy of Rob at Emphasis Added:
... [The] most intriguing proposal is for a method of Social Security reform in the
that we have not yet heard discussed in the public debate over the issue. Offer parents a tax credit against the SS payroll tax for each child they have, while continuing to credit them with the maximum contribution. Each kid would be worth a 1/3 reduction through the age of 18. Families of three or more would pay no FICA until the youngest was 18. The SS credits would only apply to higher benefits if the children successfully completed a high school degree, thereby incensing parents to actively encourage education rather than peopling the earth with unemployable mouths to feed. There are other proposals as well, all creatively crafted to appeal across the divide of political and cultural ideology. US
The logic here is that the funding “crisis” in Social Security (and the much more severe situations in private pensions and public and private heathcare payment systems) can be solved not only through revenue enhancement (e.g., confiscatory taxes or benefit reductions) or sustaining backbreaking levels of productivity growth, but by addressing the underlying demographic problems....
Fascinating. Attacking the denominator of a problem is usually much more effective and much more difficult, and it looks to me like this Gordian knot is no different. And of course, I, with my three children, LOVE the idea!
Pedro -
Glad you saw this. I wish I could take credit for the idea, but it was actually from a book called "The Empty Cradle," by Phillip Longman, which I strongly recommend.
Also, when quoting me, feel free to correct the occasional typo in my original post. I meant to say "incenting the parents" (e.g., offering them an incentive), not "incensing the parents" (e.g., making them angry)!
Posted by: Rob Salkowitz | March 30, 2005 at 12:03 PM