How to Save Social Security

One benefit of being a Swedish  and a Danish pensioner is I get to see how different the income taxes are paid there and here in the USA. For instance, in Denmark the income tax includes a 5% health tax which pays for the National Health. That might be the approach we could take in the United States.

This year the Swedes have made a change in the Social Security benefit. Instead of a COLA as we Americans sometimes get, the Swedes adjust the social security pensions according to how much is paid into the system. In 2013 less was paid into the Swedish pension system than was paid out, so they are reducing the pensions by 2,7%. No deficit spending there!

Our government would be more fiscally responsible if it followed the practice of the Scandinavians: an annual health tax to fund Medicare, Medicaid, and Obamacare and a floating social security benefit. That could save Social Security from eventual bankruptcy.  The Cost of Living Adjustment can go both ways, you know. If the cost of living goes down, so goes the pension plan. Makes sense.

But then, since when did our government’s fiscal policies make any sense?