[pavlik]

The government can manage its own fund. Some countries already do it.

No country would be operating a fund on the same scale as the United States. Compound interest isn't magical, it requires worthwhile investment opportunities. Pump 2.5 trillion dollars into the market, have it administered by a bunch of GS-14s who have no incentive to outperform the market, and you'll wind up with a lot of waste, a lot of rich people getting richer, and a broke ass fund.

There's simply no excuse to impose a regressive tax that funds a boondoggle, when you could just let people invest their own money.