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4.29.2005

A 'Progressive' Solution to Social Security

Lower income folks get wage-indexed benefits. Higher income earners get price-indexed benefits. Offset the lack of growth for Higher Incomes by allowing Personal Savings accounts, which trump everything.

The government wouldn't need to immediately borrow any money, and the system is solvent for as long as is traditionally forecast (75 years).

Best yet, it sounds like something both parties could vote for.

1 Comments:

At 4:06 PM, Blogger Miguel said...

I think the popularity of Social Security is comparable to the popularity of receiving a tax refund.

If you recieve a tax refund, you have rather foolishly lent the government that money interest free, when you could have invested it. Nonetheless, people love getting their refunds, and presume that if they'd have withheld more income, they just wouldn't have saved enough for the taxman.

The Social Security system is quite similar, only over your whole life -- income is withheld in a way where individuals likely could have made more of it, but folks know they'll be getting checks later, without having to take the trouble to plan for it.

I'll be surprised if cutting benefits so the program so that it becomes welfare for destitute old folks proves popular, but the president certainly does seem determined. I think many people thought the idea of a prime time news conference on the subject of Social Security was so silly that Osama must have been caught.

If this passes, will the Greatest Generation become known for scamming the Less Great Generations for tax dollars?

 

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