Text 10482, 61 rader
Skriven 2005-03-28 17:27:00 av VERN HUMPHREY (1:123/140)
     Kommentar till en text av GEORGE LAGERGREN
Ärende: Social Security
=======================
GL>Topic:  Social Security

GL>Vern, It looks like the Bush Adm. is going to have a hard sell
GL>to change the present S.S. set-up.

GL>Polls indicate only 40% want any changes to Social Security.

GL>Will the next president in 2009 be forced to deal with Social
GL>Security?

Hmmm . . . have we seen this before?

Yes, the next President will be forced to deal with Social Security, or
the one after next.

In the last year for which we have data (2003), Social Security ran a
surplus of $179 Billion (about $1,000 for every working American.)
Congress ripped off and squandered that money.

Current projections are for the surplus to decline to zero by 2018.
That means we will have to reduce spending to account for that $179
Billion or so a year that we will no longer be able to steal from Social
Security. (When did Congress EVER successfully cut spending?!?!)

At the same time, we will have to find money via the income tax to make
up for Social Security shortfalls which will become increasingly more
severe.

GL>___---------------

GL>And what are your ideas to change S.S. without using general revenues?

If we hurry, we can do it with the Social Security surplus.

What we must do is apply all FICA tax surpluses (the income above
current outlays) to individually-controlled Personal Retirement Accounts
(PRAs).  In other words, each person would pay the standard FICA tax,
but the government would retain only enough to cover its outlays for
that year.  The remaining FICA payment would go into the individual's
PRA.

Each individual would be guaranteed his Social Security entitlement, no
matter what.  On retirement, the individual's Social Security
entitlement would be calculated as it is now, and the funds in the
individual's PRA would be used to pay the first dollars of that
entitlement.  Public funds generated by the FICA tax would make up the
difference.

As time goes on, more and more people would retire with more and
more of their Social Security entitlement funded by their PRAs. This
would reduce Social Security outlays, resulting in those still working
being left with more and more of their FICA payments.  Ultimately --
between the 33rd and 34th year of the plan -- most people's retirement
would be fully funded by their PRA, and Social Security would only be
responsible for those unable to work or build a retirement fund.

By the 40th year, the average retiree would get enough income from his
PRA to completely replace his working wage.  Beyond that, people would
begin to retire as true millionaires.
--- Platinum Xpress/Win/WINServer v3.0pr5
 * Origin: Try Our Web Based QWK: DOCSPLACE.ORG (1:123/140)