Let's assume that tomorrow the Government were to do this. What do we do with all the people who have been paying into the system for many years? I am assuming that you would want to pay them what they were promised when they started working.
If the government just kept the money each working person has paid in, as well as keeping the matching contributions their employers paid in, how would that be fair? I don't think that would be Constitutional. The Government promised to pay if the workers paid into the system. The workers paid into the system, they expect the Government to honor their part of the bargain. For the Government not to do that, I am not an attorney but I don't think it would be legal.
So everybody who has been paying into the system would have to be able to collect Social Security and Medicare when they retired. That means the system would have to continue to pay out money for many more years until everyone who has been paying into the system is deceased.
But since you abolished the taxes associated with Social Security and Medicare, there would be no money coming into the system. So how does this work? I am curious as to how a system like you are advocating can operate, especially at a time when we have HUGE deficits and the national debt is over 14 trillion dollars. I am very much interested in hearing your plan.
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