Conservative Think “tanks” Social Security Reform
Like President George W. Bush, they only want to divert into personal accounts a portion of the 15.3% of the payroll taxes sent to Washington for every working American. I have yet to find a Heritage, a Cato or any other conservative think tank that wants to repeal Social Security and Medicare in their entirety and replace those “financial failures” with a personal account. Take the Freedom Works, Dick Armey’s organization, for an example:
The FreedomWorks Position
Social Security has become a bad deal for younger Americans. Today, most young workers are likely to get less back in retirement benefits than they paid into the system. We believe workers should be allowed to divert a portion of their payroll taxes into Personal Retirement Accounts that they - not bureaucrats and politicians - own and control. This plan would allow workers to divert a portion of their Social Security payroll taxes into a “nest egg” that they own, control, and can even pass onto their children. PRAs would grow with the economy and provide seniors with secure retirement income. If we don't act now, the costs of fixing Social Security will only continue to grow.
They promote diverting only a “portion” of each taxpayer’s payroll taxes. This is the same tragic mistake our President made in his 2005 campaign to reform Social Security. He tried to cure the 15.3% cancer that keeps metastasizing by cutting out only 4% to 6% of the disease. By only asking to do a half-assed job he got jobbed and the American economy is the worst for it.
In timidly asking the left to consider enacting personal account legislation, Bush and these think tanks miss the big picture. A Personal account excision would among other things take entitlement funding away from politicians. Presently they make the excuse that they can’t cut spending because of mandated entitlements. So the solution to that is to take mandated entitlement responsibility away from them and let that money compound into millions in each taxpayer’s personal account. Then each taxpayer would be wealthy enough to retire affluently and afford the best medical care on the planet.
To visit the wonderful world of personal accounts and learn what they can do for you and for America, visit the website of the Ownership Society Institute at www.riseupeconomy.com . To get Dick McDonald’s free e-book that outlines the advantages of a “personal account generation” like cutting the national budget in half and enacting the largest tax cut in US history, click here.
By the way, don’t make the mistake that many conservatives make when discussing the present system.
And despite voting to allow the government to continue to dip into the Social Security trust fund, Clinton has criticized businesses for not fully funding their pension plans and other obligations to workers.
Allowing for the fact that the writer was alluding to the confiscation of current Social Security receipts to pay for other programs by stating that the government “is dipping into the Social Security fund” that statement presupposes that there is a fund to dip into. There is no money in the Social Security “fund’. It is a pure fiction foisted on an unsuspecting public by politicians that have their own personal accounts paid for by you – yes the same one they are denying you. One should never refer to that fund as anything but bankrupt.