To all panelists, Concerning transition costs it would help if you could read an article in the Jan.11,1999 New York Times by Nobel Prize winner Milton Friedman. It basically says that no matter what is done to social security, the only way to fund the expected shortfall is to raise payroll taxes, borrow, create money, or reduce other government spending.
The various proposals don't go far enough with the percentage going to private accounts 2, 2.5, and 4 are not enough. The % should be more like 10%. The Clay Shaw proposal that heirs would receive the funds put into private accounts tax free is a good point. The earnings penalty being removed for older taxpayers is also a good point.
I think that alot of good things can come from this kind of discussion. We need to let each American decide their own financal future. I am 41 and would still be willing to not get any social security benefits if I could get out of the current system and into a private system.
