RE: Final questions for the Options for Reform Roundtable

[National Dialogue Moderator <moderator>]

I'm afraid I have to agree with our participants -- there is little 
likelihood of real reform passing this year. I think the chances are 1.5 -- 
maybe 2. That being said, I certainly don't think that is the right answer. 
We need to do something, and we should do it as soon as possible.

I think some variation of USA accounts could be included in a tax bill 
adopted later this year -- but I don't think they will be linked to Social 
Security and I don't think they represent Social Security reform in any 
way, shape, or form. They are gov't funded IRAs -- a new entitlement. The 
reason they could pass is that they would be funded with tax credits and 
this might make them a popular form of tax cut for Republicans and the 
President could claim credit for the idea. The good news is that they may 
result in the infrastructure for individual accounts being put in place. 
Then when we come back to this issue after the 2000 elections, as we must, 
it will be easier to create and administer individual accounts for Social 
Security.

It's hard to pick just one issue and say Congress should pass it. I 
actually think it would be a mistake to cherry pick items. It needs to be a 
package of reforms. If Congress starts down this road (to paraphrase the 
Concord Coaltion) it will be happy to give voters their dessert without 
demanding that they eat their spinach.  If I had to set priorities -- I 
think the most important thing is to establish individual accounts using 2% 
of current payroll taxes. That is the way to move toward a funded system in 
which each generation saves for its own retirement.

I closing, I would like to thank our moderator, my fellow panelists, and -- 
most importantly -- all the participants in this debate. I have learned a 
great deal and have a renewed appreciation for how at least some members of 
the public feel about this issue. We need to keep this kind of dialogue 
going. Thank you Americans Discuss Social Security and Prudential for 
making this happen.

--Ann Combs