Yes, it needs to be eliminated. It can't be eliminated in an immediete fashion however. Its gotta be a tiered thing. I suggest the same as I always suggested. Everyone 45 years and up automatically stays enrolled as it is now, paying the tax and getting the benefits. Everyone from 35 years old to 45 have a choice, continue paying the tax and be able to draw on it or opt out. Everyone under 35 is automatically opted out.
Universally, raise the age that you can start claiming SS by 3 years. Additionally institute a 2% sales tax on non-food, medicine, or housing that is not part of the total government revenue but is instead set aside singularly for social security and is rolled over each year. The Tax would have an unbreakable sunset, expiring once the last individual drawing upon SS dies.
Now, here's where I likely break with some of my conservative brethren. I do recognize the importance of mandatory retirement saving. While I dislike the government telling people what to do with their money, I realize that people...especially many young people...have issues truly looking into the future and poor retirement planning can lead to people being in a very bad situation at a point in their life when attempting to fix it on your own is going to be most difficult. How to combat this is still something I'm working on but my rough thought at this point would be the following.
Institutde a mandotory retirement savings program. Every individual, at the time of their birth, is created a government savings account. This GSA is connected to the "G Fund", which I'm sure some federal workers with the TSP would be familiar with. the G-Fund is described as follows:
G Fund
The G Fund assets are managed internally by the Federal Retirement Thrift Investment Board. The G Fund buys a nonmarketable U.S. Treasury security that is guaranteed by the U.S. Government. This means that the G Fund will not lose money.
Since its inception the G-Fund has had an average return of 5.97% interest. In the past twelve months its been at 2.7%. I think its safe to assume in general at least a 2% performance of this fund.
Employees would have 5% of their paycheck deducted and put into their GSA every time, with Employers matching that 5%. What this would mean is a slight increase on the employee with a decrease on the employer. This money would go directly into the individuals GSA rather than into some generalized pot of money. Money within a GSA would be untouchable until 65 years of age, but would NOT be taxed once you remove it. If you were to die prior to 65 years of age a dependent would be able to claim that money. At 65 years of age you are able to start removing money from the account, at a maximum of 8% per year, making sure you get at least roughly 12 years of payments from the account. I would also suggest indexing it that every 10 years if the average life span of an American increase by 5 years that the age one begins to draw from the GSA would go up by 3 years. I would also suggest any other money one pays into an official retirement system through their employer should also be tax exempt at the point of investment AND when its removed.
While the above savings account may not be enough entirely for someone to retire on, it should at least give them a good start and if nothing else a decent life preserver for the first decade after retirement. Supplimented by personal, non-government backed, plans in the private sector individuals should be able to successfully take care of their retirement. It also assures that you get what you get your money back that you paid. Taking that money out of the governments hands and no longer having to worry about how it will be funded.