Kudos to Sen. Judd Gregg (R-N.H.), John Breaux (D-La.), Bob Kerrey (D-Neb.), Chuck Grassley (R-Iowa), Chuck Robb (D-Va.), Fred Thompson (R-Tenn.), and Craig Thomas (R-Wyo.). Their SS proposal released yesterday at least indicates a little bipartisan support for allowing individuals to redirect their payroll taxes to fund individually owned personal savings accounts. The debate finally appears to be shifting how to let Americans do this; not that we should be allowed. Is the tide turing? I hope so.
Under this plan individuals would redirect 2 percentage points of the existing payroll tax into individual retirement savings accounts. Unlike the accounts described in proposals like that of Reps. Bill Archer (R-Tex.) and Clay Shaw (R-Fla.), the individual retirement savings accounts in this proposal would truly be worker owned, would not require additional government spending and would allow workers to determine how much risk to assume with their investments. Instead of having the government take back the money in workers' accounts when they retire, under this plan individuals would keep the full value of their accounts.
But, in my opinion, it does not go far enough in freeing workers from the existing tax-and-spend Social Security system. Workers should be allowed to place a much greater portion of their payroll taxes in their personal accounts, and the proposal should go further in allowing individuals to control their investment selection.
At least the support for this proposal, by these politicians, demonstrates the growing recognition that Social Security needs to be transformed into a fully funded system that gives individuals control of their retirement dollars. Workers deserve to be able to place all of their payroll taxes in individual-owned, privately invested accounts. We appear to be heading in the right direction.
Now that some of them are stating to see the light, let's keep the pressure on.
