Explain Social Security plans

[National Dialogue Moderator <moderator>]

Sometimes, talking about Social Security is like trying to capture smoke
in your fist. Let's try to simplify a bit. Both the President's plan and
the proposal by Rep, Bill Archer (R-Tex.)and Clay Shaw (R-Fla) depend
on future surpluses to help Social Security. Both plans put promissory
notes into the Social Security trust fund, and these notes, in the form
of Treasury securities, extend the life of the trust fund. The
securities are backed by the general tax revenues that the government
will collect in the future. But if the surpluses don't happen, then
taxes will have to be raised or other spending reduced. Do panel members
and the public think this is a good approach, or does it put too much
future resources into programs for the elderly, Social Security and
Medicare (which also would get some surplus under the President's
program).? For the first time, general tax revenues would be commited to
Social Security. Let's have your insights.

Bob Rosenblatt
Los Angeles Times