The Republican National Committee asked for my opinion on Social Security reform. I told them as follows:

Pensioners (and working people not yet retired) will consume what is produced by workers, robots and automation. Imports will also be consumed.

Taxes to pay for pensions should NOT be levied on payrolls: such a levy can only increase unemployment.

Rather taxes should be levied on total consumption. This is the largest base and needs the lowest tax rate.

It is a base that is not shrinking as time goes by --- the way payrolls are.

Honesty demands that we admit that payrolls were never the correct tax base for social security. Payrolls were always expected to shrink---and we knew we needed a tax base that did not shrink.

Private pension accounts do not provide the most security. They are intended for gambling in the market if they represent common shares of stock. Social "security" should not exchange security for "gambling".

If you agree, please send word to the President that the social security tax needs to be reformed to make it more progressive and more secure.

You may write the President at: President Bush <president@whitehouse.gov>

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