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Originally Posted by pan6467
The burden is off the companies to match funds, the government can still use the monies, but there is a definitive goal and a definitive amount set for the worker. From there if the worker chooses to go into an IRA or 401K, they can.
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The problem with this is the same problem we are having today.
If you give the gov't money, they will spend it, with complete disregard to paying it back (republicans and democrats alike). All that would accomplish is substituting a failed policy with another one that is set-up for failure.
What you are offering is very similar to the trust fund set up to protect Social Security. The only problem is that nobody protected the trust fund.
I can appreciate the idea, and would be inclined to consider it, but you still leave the money in the hands of the people who shouldn't have it instead of the people who should.
Now, if the money wasn't available for the gov't's use and could not be touched, that would be a different story all together.
I do, however, have a question about your idea:
Aren't you proposing a system that is based on a 1:1 ratio?
If the tax rate for a ratio of roughly 3:1 is 12.4%, what would be your tax rate to achiece the goal of 1:1?