American Retirement Security Act
The Most Comprehensive Retirement Reform in History
⚖️ The Honest Trade-off
ARSA participants pay the full 19.8% payroll tax rate but receive no additional Social Security benefits from post-ARSA contributions. This temporarily higher burden funds the transition and system sustainability.
The payoff: $20,000 investment grows to $562K-9.8M ($214K-1.6M 2025 PPP), creating retirement income 2-3x better than Social Security while building generational wealth.
Tax relief timeline: As current Social Security recipients pass away over 20-40 years, payroll tax rates can drop significantly since fewer people will be drawing traditional benefits.
$20,000 Investment Gift
Every American under 30 receives $20,000 invested in S&P 500 index funds. With 10% returns, this grows to $562K ($214K 2025 PPP) for 30-year-olds, $9.8M ($1.6M 2025 PPP) for newborns.
Higher Taxes, Superior Benefits
Pay 19.8% payroll taxes (vs 15.3% today) but get retirement benefits worth 2-3x more than Social Security plus generational wealth creation.
Maintained Disability Benefits
Current disability calculation methods preserved with enhanced funding stability. Future improvements possible as inheritance revenue grows to $11T+ (1.8T+ 2025 PPP) annually.
Enhanced Healthcare Funding
Medicare tax increases from 2.9% to 3.9% ensure long-term sustainability. No changes to coverage, eligibility, or benefits—just better funding.
Budget Gap Closure
OASDI taxes increase to 15.9% to close Social Security's funding gap. Combined with reduced long-term obligations, this ensures system sustainability.
Temporary Sacrifice
Higher tax rates decline as traditional Social Security recipients pass away over 20-40 years. ARSA creates the path to much lower future tax rates.
🎯 The Value Proposition
Yes, you pay more in taxes initially. But here's what you get:
Immediate: $20,000 Gift
Instant $20,000 investment that starts growing immediately toward $562K-9.8M ($214K-1.6M 2025 PPP) by retirement
Retirement: 2-3x Income
$50K-96K 2025 PPP annual retirement income vs $28K 2025 PPP from Social Security alone
Family: Generational Wealth
$281K-4.9M ($150K-800K 2025 PPP) inheritance vs $0 from Social Security
Future: Lower Taxes
Tax rates drop significantly as traditional Social Security ends naturally
| Annual Income | Current Taxes (15.3%) | ARSA Taxes (19.8%) | Additional Cost | ARSA Account Value at 65 | Return on Investment |
|---|---|---|---|---|---|
| $30,000 | $4,590 | $5,940 | +$1,350/year | $562K-9.8M ($214K-1.6M 2025 PPP) | 10x-100x+ return |
| $50,000 | $7,650 | $9,900 | +$2,250/year | $562K-9.8M ($214K-1.6M 2025 PPP) | 6x-100x+ return |
| $75,000 | $11,475 | $14,850 | +$3,375/year | $562K-9.8M ($214K-1.6M 2025 PPP) | 4x-72x return |
| $100,000 | $15,300 | $19,800 | +$4,500/year | $562K-9.8M ($214K-1.6M 2025 PPP) | 3x-54x return |
🔄 The Tax Rate Decline Timeline
Current Social Security recipients will naturally phase out over 20-40 years. As this happens, the need for high payroll tax rates diminishes dramatically:
- 2025-2045: Higher tax rates fund transition and current retirees
- 2045-2065: Tax rates begin declining as fewer traditional Social Security recipients remain
- 2065+: Dramatically lower tax rates possible as inheritance taxes provide $2T+ annually
- 2080+: Payroll taxes potentially eliminated entirely, funded by inheritance and investment returns
🍼 The Newborn Advantage: Why Starting Early Matters
Every baby born from 2025 forward gets the maximum benefit:
65 Years of Growth
$20,000 → $9.8M ($1.6M 2025 PPP)
Annual retirement income: $588K ($96K 2025 PPP)
Lifetime Value
Pay at most ~$180K extra in taxes over 40 years of work
Receive $9.8M account value = 54x return
Tax Rate Benefits
Experience declining tax rates throughout career
Retire into era of minimal payroll taxes
Generational Impact
$4.9M ($800K 2025 PPP) inheritance to children
Family wealth creation for generations
💭 The Bottom Line
ARSA requires sacrifice: You'll pay higher taxes initially while receiving no additional Social Security benefits from those payments. This is the honest cost of fixing a broken system.
ARSA delivers results: In exchange for temporary higher taxes, you get a $20,000 investment that grows to hundreds of thousands or millions, retirement income 2-3x better than Social Security, and generational wealth creation.
ARSA creates the future: Your sacrifice today funds the transition to a system where your children and grandchildren will pay much lower taxes while enjoying unprecedented prosperity.
Reshaping America's Economic Future
💰 Immediate Budget Impact
2025-2029: Higher payroll taxes generate $400B+ annually while $2.4T investment creates future wealth. Net budget improvement within 5 years despite initial investment.
📈 Long-Term Revenue
2070+: Inheritance taxes generate $11T+ (1.8T+ 2025 PPP) annually. Government revenue doubles while expenditures drop dramatically.
🎯 Individual Benefits
Despite higher overall tax rates, ARSA participants build $562K-9.8M ($214K-1.6M 2025 PPP) retirement accounts and get to see the federal debt disappear.
🏛️ The Congressional Opportunity
Political Legacy
Pass the most transformative and popular legislation in American history. Solve Social Security permanently while creating unprecedented prosperity.
Economic Impact
Generate massive long-term revenue while eliminating the largest government liability. Enable debt elimination and fund national priorities.
Historical Significance
Be remembered as the Congress that ended poverty in old age and created the most prosperous society in human history.
ARSA Tax System: Closing Revenue Gaps
Honest Tax Structure: Higher Rates, Superior Outcomes
⚖️ The Reality: Everyone Pays Higher Taxes
All workers pay 19.8% payroll taxes (up from 15.3%) to close existing funding gaps and fund the transition. ARSA participants get no additional Social Security credits from post-ARSA contributions, but receive vastly superior benefits through their $20,000 investment accounts.
OASDI Tax: 15.9%
Up from 12.4%
Closes Social Security funding gap
Split: Employee 7.95%, Employer 7.95%
Applies to ALL workers during transition
Medicare Tax: 3.9%
Up from 2.9%
Ensures Medicare sustainability
Split: Employee 1.95%, Employer 1.95%
Applies to ALL workers
The ARSA Trade-off
Pay higher taxes BUT:
Get $20,000 investment gift
Build $562K-9.8M ($214K-1.6M 2025 PPP) retirement account
Create generational wealth
100x+ return on extra taxes paid
| Worker Type | Payroll Tax Rate | Additional Social Security Credits | ARSA Benefits | Net Outcome |
|---|---|---|---|---|
| Non-ARSA Worker | 19.8% | Yes (full credits) | None | Higher taxes, same benefits (May be able to slightly increase benefits based off lesser future Social Security liabilities) |
| ARSA Participant | 19.8% | No (post-ARSA contributions) | $20K investment + superior retirement | Higher taxes, vastly better outcomes |
📉 Future Tax Rate Decline
Current higher rates are temporary: As traditional Social Security recipients pass away over 20-40 years, the need for high payroll taxes diminishes. Eventually, inheritance taxes ($11T+ (1.8T+ 2025 PPP) annually) can fund most government operations, allowing dramatic payroll tax reductions.
- 2025-2045: 19.8% rate funds transition
- 2045-2065: Rates begin declining to ~15%
- 2065-2080: Rates drop to ~10% as inheritance revenue grows
- 2080+: Payroll taxes potentially eliminated entirely
🎯 Why This Approach Works
Honest about costs: We acknowledge the higher tax burden rather than pretending the current system is sustainable.
Superior value: ARSA participants pay ~$90K extra in taxes over 40 years but receive $562K-9.8M ($214K-1.6M 2025 PPP) in account value.
Declining burden: Higher taxes today fund lower taxes tomorrow as the system matures and traditional Social Security ends.
Generational justice: Today's sacrifice creates unprecedented prosperity for future generations.
What You Get vs What You Pay
💸 The Honest Truth About Taxes
ARSA participants pay higher taxes: 19.8% payroll tax rate (vs 15.3% today) but receive no additional Social Security benefits from post-ARSA contributions. This funds the transition and system sustainability.
But you get vastly superior benefits through your $20,000 investment account that grows to $562K-9.8M ($214K-1.6M 2025 PPP) by retirement.
Immediate: $20,000 Investment
Receive $20,000 invested in the stock market immediately. This money starts growing from day one and could reach $562K-9.8M ($214K-1.6M 2025 PPP) by retirement.
Annual Tax Impact
Return on Investment
Pay more in taxes, get much more in benefits:
• Lifetime extra taxes: $50K-180K
• Account value received: $562K-9.8M ($214K-1.6M 2025 PPP)
• ROI: 3x to 100x return
Protected Existing Benefits
Keep every penny of Social Security benefits you've already earned from past work. ARSA adds to your retirement income, never subtracts from existing credits.
Declining Tax Burden
Higher tax rates are temporary. As traditional Social Security recipients pass away over 20-40 years, payroll tax rates can decline significantly.
Generational Wealth
50% inheritance creates family wealth of $281K-4.9M ($150K-800K 2025 PPP). Social Security provides $0 inheritance—ARSA transforms family economics forever.
| Benefit | Current System | ARSA Participant | Improvement |
|---|---|---|---|
| Payroll Tax Rate | 15.3% | 19.8% | +4.5% higher |
| Retirement Account | $0 | $562K-9.8M ($214K-1.6M 2025 PPP) | Massive wealth creation |
| Annual Retirement Income | ~$28,000 | $50K-96K 2025 PPP | 2-3x better |
| Family Inheritance | $0 | $281K-4.9M ($150K-800K 2025 PPP) | Generational wealth |
| Future Tax Outlook | Rising (funding crisis) | Declining over time | Lower future burden |
🎯 Why Higher Taxes Are Worth It
Short-term sacrifice, long-term prosperity: Pay $50K-180K extra in taxes over your career, receive $562K-9.8M ($214K-1.6M 2025 PPP in account value. That's a 3x to 100x+ return on your additional tax investment.
System sustainability: Higher taxes today solve the $22 trillion Social Security crisis and fund a superior system that provides better benefits for everyone.
Future tax relief: Your sacrifice today funds a system where your children and grandchildren will pay much lower taxes while enjoying unprecedented prosperity.
Retirement Wealth Creation
👤 25-Year-Old Today
Account at 65: $300,000 (7% real returns)
Annual Income: $18,000
Plus: Social Security from past work
Total: ~$33,000/year
Family Inheritance: $150,000
👶 Newborn (Maximum Benefit)
Account at 65: $1.6M (7% real returns)
Annual Income: $96,000
Plus: Enhanced benefits throughout life
Family Inheritance: $800,000
📊 vs. Social Security Alone
Current System: ~$28,000/year
ARSA 25-yr-old: 20% better
ARSA Newborn: 3.5x better
Inheritance: ∞ better (SS = $0)
🌟 The Compound Growth Miracle
The difference between starting at age 25 vs. birth demonstrates why ARSA's newborn provision is so transformative:
- 25 extra years of growth nearly triples final account value
- Enhanced benefits from birth provides superior protection
- Generational wealth creation transforms family economics
Disability Benefits: Current System Maintained
🦽 Current Calculation Method Preserved
Disability benefits calculated exactly as today using the existing Primary Insurance Amount (PIA) formula. No changes to eligibility, calculation method, or benefit structure.
📋 Unchanged Benefits
Same as current system:
• PIA formula (90%/32%/15%)
• Work credit requirements
• Medical eligibility criteria
• Cost of living adjustments
💪 Enhanced Funding
More stable financing:
• Higher OASDI rate ensures funding
• Reduced long-term obligations
• Sustainable system design
• Future enhancement potential
🔮 Future Improvements
Room for enhancement:
Once inheritance tax revenue grows
Potential benefit increases available
Maintains current protections
System can only get better
⏳ Timeline for Potential Improvements
As ARSA matures and inheritance tax revenue increases (projected $11T+ (1.8T+ 2025 PPP) annually by 2090), Congress will have substantial resources to enhance disability benefits beyond current levels while maintaining system sustainability.
Complete Healthcare Protection
🏥 Zero Changes to Healthcare Programs
Medicare and Medicaid continue exactly as they operate today, with enhanced financial stability. ARSA strengthens healthcare funding rather than threatening it.
✅ Medicare Protection
No changes to:
• Eligibility (age 65)
• Coverage (Parts A, B, C, D)
• Costs (premiums, deductibles)
• Benefits (all services maintained)
✅ Medicaid Protection
Completely unaffected:
• Same eligibility rules
• Same coverage levels
• Same long-term care support
• Same state programs
💪 Enhanced Funding
Dedicated 3.9% payroll tax, split between employee and employer, creates stable, focused funding for Medicare and disability programs, improving long-term financial security.
| Healthcare Program | Current Status | Under ARSA | Improvement |
|---|---|---|---|
| Medicare Eligibility | Age 65 (or disability) | Age 65 (or disability) | No change |
| Medicare Coverage | Parts A, B, C, D | Parts A, B, C, D | No change |
| Medicaid Programs | Current structure | Current structure | No change |
| Funding Stability | Mixed sources, some uncertainty | Dedicated tax, stable funding | Enhanced |
Calculate Your ARSA Benefits
🎯 Your Personal Transformation
Enter your information below to see your complete ARSA benefits package. Values show both real purchasing power (2025 dollars) and nominal future values accounting for 3% annual inflation.
ARSA's Impact on Federal Budget
Revenue Enhancement
Higher payroll taxes immediately close Social Security and Medicare funding gaps while ARSA participants still save thousands annually through retirement tax exemption.
Expenditure Reduction
Gradual Social Security phase-out reduces long-term obligations by $15-20 trillion while providing superior benefits to younger Americans.
Long-Term Surplus
Inheritance tax revenue eventually generates $11T+ (1.8T+ 2025 PPP) trillion annually, creating unprecedented budget surpluses and enabling debt elimination.
Investment Returns
Market performance on ARSA accounts generates 7-10% returns while government borrows at 4%, creating massive long-term profits.
| Year | Baseline Revenue | ARSA Revenue | Baseline Expenditure | ARSA Expenditure | ARSA Budget Impact |
|---|---|---|---|---|---|
| 2025 | $5.5T | $5.9T | $7.3T | $7.8T | -$300B (investment year) |
| 2030 | $7.2T | $7.8T | $8.8T | $8.9T | +$500B improvement |
| 2040 | $10.1T | $11.2T | $12.5T | $11.8T | +$1.8T improvement |
| 2070 | $22.4T | $26.9T | $28.1T | $21.3T | +$12.4T improvement ($5.6T surplus) |
Strategic 5-Year Rollout
Phase 1: Age-Based Implementation (2025-2029)
Launch: Ages 25-30 + All Newborns
24 million Americans get $20,000 accounts. Every baby born gets automatic enrollment.
Expansion: Ages 20-25 + More Newborns
Another 24 million Americans join ARSA. Continued newborn enrollment.
Youth Integration: Ages 15-20
Teenagers receive accounts. Educational programs begin.
Children: Ages 10-15
Children receive accounts for future activation. Parents see tangible wealth building for their kids' futures.
Completion: Ages 5-10
Final group receives accounts. All Americans under 30 now have ARSA accounts. Social Security retirement begins natural phase-out.
Phase 2: Growth & Maturation (2030-2090)
2030-2060: System Growth
Accounts compound for decades. Every newborn gets automatic enrollment. Enhanced benefits prove their value. Social Security retirement shrinks naturally.
2060-2070: First Retirees
First ARSA participants retire with $300K-$1M accounts. Dramatic success becomes undeniable. Public support reaches historic levels.
2070-2090: Full Maturation
Inheritance tax revenue reaches $11T+ (1.8T+ 2025 PPP) annually. Federal debt elimination becomes possible. Social Security retirement ends naturally.
Phase 3: Permanent Prosperity (2090+)
🌟 The New American Dream
By 2090, the first "newborn generation" retires with $9.8 million ($1.6 million 2025 PPP) accounts. Poverty in old age becomes extinct. America achieves the most prosperous society in human history, with every citizen guaranteed millionaire status by retirement.