Loading ...
Sorry, an error occurred while loading the content.

Liberty: -- Issues -- Privatize program now

Expand Messages
  • Marc Brands Liberty
    Read this article and vote at: http://www.liberty-news.com/showNewsletter.php?id=200405021&src=tyg2400 Privatize program now by Mike Tanner Social Security
    Message 1 of 1 , May 2, 2004
    • 0 Attachment
      Read this article and vote at:
      http://www.liberty-news.com/showNewsletter.php?id=200405021&src=tyg2400

      Privatize program now
      by Mike Tanner


      Social Security reform cannot be put off. In less than 15 years, the
      national retirement program will begin to run a deficit, spending more
      on benefits than it takes in through taxes. The IOUs in the Social
      Security Trust Fund are merely a claim against future taxes, not real
      assets that can be used to pay benefits. Overall, the system is more
      than $26 trillion in debt.

      It was President Clinton who laid out the very limited options for
      fixing the problem: raise taxes, cut benefits or invest in the stock and
      bond markets, which historically provide a higher rate of return.
      Certainly, it is possible to raise taxes or cut benefits enough to prop
      up the existing system for a little while longer. But the Social
      Security payroll tax already is the biggest tax the average American
      family pays. Do we really want our legacy to our children and
      grandchildren to be the largest tax increase in American history?

      Cutting benefits is no better an option. Already, younger workers can
      expect a low, below-market return on their taxes. Benefit cuts only
      would make a bad deal worse.

      That leaves private investment as the only viable option. By allowing
      younger workers to invest their Social Security taxes through private
      individual accounts, we can:

      • Help restore Social Security to long-term solvency without having to
      resort to massive tax increases.

      • Provide workers with higher benefits than Social Security otherwise
      would be able to provide.

      • Create a system that treats women, minorities and young people more
      fairly.

      • Allow low-income workers to accumulate real, inheritable wealth for
      the first time in their lives.

      • Give workers ownership of and control over their retirement funds.

      Some people say that the current budget deficits make Social Security
      reform, and, particularly, individual accounts, impossible. They point
      to the "transition costs" of moving to individual accounts. Since
      current taxes are used to pay current beneficiaries, allowing younger
      workers to invest their taxes will require a replacement form of revenue
      to protect current retirees. But given Social Security's unfunded
      liabilities, the transition does not really represent a new cost. It is
      just making explicit an already-implicit debt.

      Of course, it would mean paying that debt now rather than later. It is
      true, therefore, that reforming Social Security will increase short-term
      budget deficits. But it will save trillions of dollars in the long term.
      In many ways, it is like refinancing your mortgage. Sure, you have to
      pay the points up front, but you save money in the long run.

      Federal budget deficits are not a good thing. But letting current
      deficits stand in the way of Social Security reform is to saddle our
      children and grandchildren with a much bigger bill.

      -----
      Source: http://www.usatoday.com/news/opinion/editorials/2004-02-23-oppose_x.htm


      Archive: http://www.liberty-news.com/showArchiveResult.php?src=tyg2400
      =====================================================================
      Quote:
      - The only freedom which deserves the name is that of pursuing our own
      good in our own way, so long as we do not attempt to deprive others of
      theirs, or to impede their efforts to obtain it. --John Stuart Mill
      =====================================================================
      You are currently receiving this newsletter through a Yahoo
      group, please follow the Yahoo group instructions below to
      unsubscribe. To Post Comments, Subscribe, Unsubscribe
      another address, Change E-mail Address or Other inquires
      please go to the following link for instructions:
      http://www.liberty-news.com/subscription.php?src=tyg2400


      [Non-text portions of this message have been removed]
    Your message has been successfully submitted and would be delivered to recipients shortly.