December 1, 2003

Reason #27 to vote Republican...

By Peter Ferrara, Wall Street Journal 12/1/2003

President Bush put the idea of a personal account option for Social Security on the national agenda in his 2000 campaign. Such reform would allow workers the freedom to choose to shift a portion of their Social Security payroll taxes into their own personal investment account, which would then finance a proportionate share of future Social Security retirement benefits. Administration officials have said such reform will be a focus of next year�s campaign, and a second Bush term.

But up until now, establishment Washington has assumed that at most an option for only 2 percentage points of the 12.4% Social Security payroll tax would be feasible. That assumption has done more to dampen enthusiasm for the reform than any of the weak criticisms of the idea.

The Social Security Administration (SSA), however, is releasing today an official score for a proposal for much larger personal accounts, averaging 6.4 percentage points. That score shows that such large personal accounts would achieve permanent solvency for Social Security, without benefit cuts or tax increases. Moreover, it shows that the transition financing burdens of such reform would be quite manageable....

Posted by John Weidner at December 1, 2003 9:21 PM
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