Currently, Social Security and Medicare are funded through payroll taxes paid by both the employee and the employer. I propose that we replace the current payroll tax with a National Sales Tax set to a rate that is equal to next year's expected distributions. To lower the impact on the poor, we would place the tax on all goods and services, excluding groceries.
Doing so will immediately spur job creation as companies won't have the extra costs associated with hiring additional employees. Employees would receive a larger paycheck to help offset the increase in sales tax.
To expedite the passage of the Payroll Replacement tax, we'll leave the distribution discussion for another day. Eliminating the current trust fund will more accurately account for our countries deficit and debt.