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budget deficit, Congress, debt, deficits, Economics, entitlements, Federal Spending, Financial Services, government spending, News, Obama, payroll tax, Personal Accounts, Personal Retirement Accounts, politics, privatization, Social Security, Social Security Payroll Tax, Social Security Privatization, social security reform, taxes, unfunded liabilities
BigGovernment.com
Posted Jan 10th 2011 at 2:52 pm
by Dan Mitchell
There are two crises facing Social Security. First the program has a gigantic unfunded liability, largely caused by demographics. Second, the program is a very bad deal for younger workers, making them pay record amounts of tax in exchange for comparatively meager benefits. This video explains how personal accounts can solve both problems, and also notes that nations as varied as Australia, Chile, Sweden, and Hong Kong have implemented this pro-growth reform.
Social Security reform received a good bit of attention in the past two decades. President Clinton openly flirted with the idea, and President Bush explicitly endorsed the concept. But it has faded from the public square in recent years. But this may be about to change. Personal accounts are part of Congressman Paul Ryan’s Roadmap proposal, and recent polls show continued strong support for letting younger workers shift some of their payroll taxes to individual accounts.