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August 23rd, 2005An important reminder
August 23rd 06:48:32 PM
Social Security Choice reminds us that sometimes it's good to remember some basic facts about Social Security.
-Every two-year election cycle that we wait to reform Social Security costs an additional $320 billion.
-The Social Security payroll tax rate has grown from just 2 percent in 1949 to 12.4 percent today.
-"Saving" Social Security without individual accounts could require a 50% increase in Social Security taxes or a 27% cut in benefits.
-Social Security taxes have been raised more than 40 times since the program began.
Posted by Chris Schrimpf| Comments (0)
August 22nd, 2005GROW Accounts - The Pinch Hitters of Social Security Reform
August 22nd 09:14:45 PM
In an article in today's Washington Times, Donald Lambro urges President Bush to give his blessing to House Majority Leader Tom DeLay on the proposed "GROW" accounts bill.
Though GROW accounts are certainly a step in the right direction, they're the equivalent of a pinch hitter: a huge relief when your team is in a bind, but not an exact substitute for the real thing.
Don't get me wrong; GROW accounts will certainly offer workers an alternative to the current system, where Congress robs the Social Security Trust Fund on a regular basis. The accounts will stem the tide of funds flowing out of the fund, ensuring that payroll taxes are spent on Social Security benefits and only Social Security benefits.
Stopping the ritual bleeding of the Trust Fund is surely nothing to complain about. However, by investing in only the bond market, GROW accounts forgo the opportunity for a greater return on investment and an increase in control over one's retirement that will be gained with other investment options.
I applaud Congressmen McCrery, Chairman of the Social Security Subcommittee of the House Ways and Means Committee, for putting this bill together and for acknowledging that structural reform to the system must take place. It is important to remember, however, that with more investment options, Americans - and particularly young Americans - can exercise more control over and gain ownership of their retirement futures.
Posted by Erin Robert| Comments (2)
Get Religious
August 22nd 02:34:15 PM
Did you know that members of certain religions don't have to participate in Social Security? It's true. Just look at IRS form 4029.
Here's more ways you can opt-out of Social Security.
Posted by Chris Schrimpf| Comments (4)
Celebrating the Trust Fund
August 22nd 01:23:46 PM
Critics of reform tried to make a big deal about the Administration not celebrating the 70th anniversary of the "trust fund", but President Bush, Secretary Snow, Secretary Chao, Social Security Commissioner Jo Ann Barnhart, and U.S. Treasurer Anna Cabral all commemorated the trust fund.
Posted by Chris Schrimpf| Comments (0)
Social Security mistreating women and children.
August 22nd 01:02:08 PM
Check out these articles for how social security is unfair to women and the modern family.
Social Security Out of Step with the Modern Family.
Social Security for Yesterday's Family?
Social Security Choices for the 21st Century Woman
Read more here.
Posted by Chris Schrimpf| Comments (0)
August 21st, 2005Women Support Reform
August 21st 10:38:20 PM
Check out these pro-reform women's groups: Women for a Social Security Choice and Homemakers for America. The grassroots movement is going strong for reform. Social Security reform will take place because of the work of grassroots groups making the voice of ownership heard.
Posted by Chris Schrimpf| Comments (0)
August 20th, 2005White House: Younger Workers Have the Most to Gain from Social Security Reform
August 20th 11:31:41 PM
"There Is A Narrow Window To Fix Social Security For Today's Youth. In just three years, the first Baby Boomers will begin to retire, putting added strain on the system. In 2017, the system will begin paying out more than it takes in. This will ultimately result in drastically higher taxes, reduced benefits, increased debt, or cuts to other critical government programs.
The Government Has Borrowed $1.7 Trillion From The Social Security Trust Fund. The government has borrowed the total value of the Trust Fund to pay for other government spending. Beginning in 2017, the government will have to begin backing up these paper promises with real money.
A Permanent Solution Is Needed For Today's Youth. A band-aid solution of quick fixes and small tweaks will only pass this problem on to the next generation.
Younger Americans Support The President's Social Security Plan.
Younger People Have Little Faith In The Current Social Security System. A recent national poll by Harvard University's Institute of Politics (IOP) found seven out of ten American college students did not believe Social Security would pay out benefits when they retire.
Today's Younger Workers Want A Nest Egg. Younger workers have seen how the government has used their Social Security taxes to fund other programs, and they understand that voluntary personal accounts offer a better way to fund Social Security. A recent Fox News poll found 84 percent of Americans ages 18 to 55 believe they should have the option of creating a voluntary personal account within the Social Security system.
Younger Workers Already Belong To The Investor Class. Younger workers today are more familiar with investments than previous generations. Through 401(k) plans offered by employers across the country, workers know the power of compound interest and how their contributions to these accounts can grow steadily over time.
The President Has Outlined Details To Guide The Legislative Process.
Future Generations Will Receive Benefits Equal To Or Greater Than Today's Seniors. Under any plan to reform Social Security, future generations should receive at least as much as seniors receive today.
Protect Future Generations Who Depend on Social Security The Most. Low-income workers should receive benefits that grow faster than benefit increases for the wealthiest seniors, which would grow no faster than the rate of inflation. This change alone would solve 70 percent of the funding problems facing Social Security.
Replace The Empty Promises Being Made to Younger Workers With Real Money. Younger workers should have the option of putting a portion of their payroll taxes into a voluntary personal account. This nest egg will give workers an opportunity to receive a higher rate of return than the current Social Security system can provide.
The President Will Continue To Work With Congress. Social Security is too important to pass this problem on to the next generation. The President has committed to work with both the House and Senate in a bipartisan way.
From the White House Fact Sheet
Posted by Chris Schrimpf| Comments (2)
Another Senior Group Backs Reform
August 20th 03:47:26 PM
RetireSafe, a grassroots advocacy organization for older Americans, announced its support for proposals by House and Senate Republicans to Stop the Raid on Social Security... Read on.
Posted by Chris Schrimpf| Comments (2)
Young Americans' Views on Social Security
August 20th 09:51:11 AM
Americans for Prosperity Foundation today announced the winners of its Social Security essay contest for students in grades four through 12. The first-place winners in the two divisions will each win $250 for their winning essays.
Read the essays.
Posted by Chris Schrimpf| Comments (1)
August 19th, 2005Black Activists Support Reform
August 19th 03:34:16 PM
"Black Americans in particular would benefit from this reform," notes Project 21 member and syndicated columnist Deroy Murdock. "Since we tend to die sooner than other Americans, we typically collect less of our Social Security benefits than do others. Personal retirement accounts would let black Americans enjoy this wealth sooner, and, unlike in today's system, pass it along to their heirs."
Project 21 member Eddie Huff, a financial planner, recently wrote in a New Visions Commentary: "In my experience, black Americans seem least likely to properly plan for and take the necessary actions required to leave an estate behind of any real worth... [S]uccessive generations of African-Americans must start from scratch... The Bush Administration needs to drive home the fact that transferability is a key facet of reform."
Read on.
Posted by Chris Schrimpf| Comments (0)
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