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Purpose: To ensure the long-term financial sustainability of the Social Security system while promoting fairness and equity among contributors.

Key Components:

1. Progressive Social Security Tax: Beginning in 2026, implement a tiered Social Security payroll tax system that applies higher tax rates for higher income brackets. The exact tax brackets and rates will be determined based on current income distribution data and will be reviewed periodically to maintain fairness.

2. Raise the Wage Base Limit: Starting in 2027, incrementally increase the Social Security wage base limit over a period of 10 years to ensure that more income is subject to taxation. This change will be phased in gradually to minimize potential disruptions to taxpayers and the economy.

3. Gradually Increase Retirement Age: Beginning in 2031, raise the retirement age by two months per year until it reaches age 70 in 2041. The change will be implemented gradually, with no impact on individuals within 10 years of retirement to minimize disruptions to retirement plans.

4. Means-Testing for Benefits: Implement means-testing for Social Security benefits starting in 2029, taking into account an individual's income and assets. This change will ensure that those who are truly in need receive benefits, while higher-income individuals have their benefits reduced or eliminated.

5. Increase Transparency: Starting in 2025, improve communication and transparency about the Social Security system by providing clear and simple information to the public. This includes regular updates on the system's financial status, as well as clear explanations of how contributions are used and how benefits are calculated.

6. Tax Credit for High-Wealth Individuals: Beginning in 2028, provide a yearly tax credit equal to earned Social Security benefits for high-wealth individuals who do not qualify for Social Security benefits due to their financial status. This change will ensure fairness for those who have contributed to the system but are not eligible for benefits.

Deficit Reduction Time Frame:

To reduce the current Social Security deficit, a combination of these measures will be implemented over a period of 15 years, starting from 2025. The specific timing of each component's implementation has been detailed above. Regular reviews will be conducted to monitor the impact of these changes and ensure the plan's effectiveness in reducing the deficit. As these changes take effect and revenue increases, the deficit will gradually be paid off, with the goal of achieving full sustainability by 2041.

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Sincerely,

Jay Bowman