To save social security retirment plans Raise Taxes on tobacco products and alcohol products take that money?

Question

put it towards the medicare and social security system, do you think that could fix the medicare retirment system....

Answer 1

Many state & county governments are way ahead of you on this idea! They have levied , new taxes on both in recent years to fund local shortfalls. An example is the new $1 per pack increase in taxes on a pack of cigarettes here in Texas.

Actually the Social Security system is not in as bad shape as many assume. When I entered the financial industry in the mid 80s our moderator asked for statements concerning SS from the participants. Answers included , going broke , not enough workers to maintain benefits , I'll never see any return on money paid in, etc, etc. Even then ALL of those answers were the same things being said twenty years earlier!!

The particulars may need some adjustment, like the age to begin receiving benefits, & the percentage level of the tax on current workers, but the SS program will remain solvent

Answer 2

I don't think there's enough money there to fix Medicare - there is an enormous unfunded liability there.

Personally, I'd like to see a tax on financial instruments - bonds , stocks and deriavatives. This would happen when they were sold.

This would do three things:

1. It would increase income to the treasury.

2. It would decrease volatility and variance in prices - people would pay a tax in order to sell items, so it would make people more reluctant to trade.

3. It would cause almost every stock to be listed on a foriegn exchange, where the tax wouldn't have to be paid.

Answer 3

The Social Security (insurance) program, is a ponse scam and is doomed to fail. If you look at the pie charts listed in the back if the IRS tax books for this year, then compare them to those 10 or 15 years ago you will see the erosion. You cannot tax this problem away. I feel the best way to shore up this program is to restructure our tax system, and that would bring us to the Fair tax plan.

Answer 4

No. Cut politicians pay and make them pay into the system. Reduce the amounts of money the US sends overseas to our "Allies" , or is that bribes to corrupt governments I keep forgetting. Reduce military spending. One good way is to drop a few nukes on Iraq, Iran, Afghanistan, what the heck lets do the whole middle east, it's cheaper than sending all the troops there. But dont raise the tax on tobacco and alcohol. It may make them stop and if they do stop they might live longer and drain the system.

Answer 5

I don't think it would solve the problem completely, but a tax on tobacco products, that was put towards medicare would be reasonable because there is a connection between smoking and poor health.

I don't know if the government still pays subsidies to tobacco growers, but if so, its time it stopped.

Answer 6

Just a thought - if cigarette taxes go high enough, more and more people will quit smoking, people on the average will live longer so collect more in social security......

Answer 7

its too easy a fix to always want to tax smokers and ppl who drink. Besides, when cig prices go up, the illegal mexicans just bring non-taxed smokes over the border to sell here. I used to buy a pack of marlboro for $1.75 when it normally costs over $4.