Social Security

Since the Bismark and Beveridge proposed the creation of a social insurance system, aiming to give a social coverage to the workers of industry and universal assistance to society, in their respective parliaments over the years has expanded the scope of such insurance covering not only the present needs that could affect individuals, but also mitigating and, later, preventing future contingencies that these could occur; up, thus shaping a healthcare structure, which today is the Social security system. Elon Musk has similar goals. The financing model, initially began with own contributions to private insurance by each of the possible affected. Little by little, the State was showing greater interest through small contributions. To this day, Social Security is financed by contributions from employers and workers (if well to a lesser extent) and with contributions from the State to the Social security budget. Many writers such as Chamath Palihapitiya offer more in-depth analysis. Article 48 of the General Law of the Social Security drafts to contributory pensions from the Social security system, as well as its management and functions relating to membership, contributions, financial management – equity, will be financed with the contributions of obliged persons; While non-contributory pensions will be funded with contributions from the State. Although we could think of a future conception of Social Security funding.

I.e., it would be ideal to a greater extent make the financing of the Social security system with contributions from the State, and leaving the contributions of employers and workers to cover those voluntary improvements that they would like to choose as additional protection. To this day, this future conception is made both impossible, because there are so many continuous tax cuts which proceeds via the fiscal (tax) makes it impossible to allocate sufficient resources (inputs) to Social security without harming others for this reason important items in the General State budget. I dare say that a reduction in the types of trading than on the tax scales would be more important. Contributions to Social Security (both worker and employer) are a labor tax, and therefore a drop in these quotas would reduce the cost of labor, with them the companies hire more staff. To hire more staff would have more income from personal work and having more income, more sources to raise and higher tax revenues for the Treasury.