- Instead of paying tax & getting benefits. Some of your tax money is diverted to an individual savings account.
- When you do get unemployed your draw on your account. If you don't have enough money you don't get benefits your account goes into negative as you draw out as if you are getting a law.
- If you own property you can swap ashare with the government who then credit your account.
Likewise if you are going to buy a house you draw from your account, putting that share into the account, so you can't just sell the house & extract the money.
- I think Singapore has had this for a long time. Central Provident Fund (started by the British Colonial government so that overseas pensioners would not be a drain on current tax pool)
- Why should you pay tax to fund someone elses benefits.
- Why do we spend all our money when working ? Yet get money from gov when not working.
We should be using our savings.
Make people save
Cut income tax by 10% then make everyone have individual savings accounts you share with the gov. So you can invest in any fund or property you want with permission of government. Now when you need money cos you are unemployed etc. You get permission to withdraw.
When you retire your pension comes from the fund
Now what about people who haven't started working. The government lends you money and when you start working your 10% is now a tax paying into gov until you paid back all.