posted on Dec, 9 2004 @ 03:21 PM
In 2001, I was in favor of using a portion of the surplus cash flow from Social Security in order to fund a transition to private accounts. I'm
definitely not in favor of borrowing in order to fund the transition. The government will eventually have to raise income taxes far more in the future
to pay for the accumulated interest owed each year.
If I was going to design an alternative private retirement system, I would make the contributions to the IRA's, 401Ks, 403B's, and similar accounts
exempt from the portion of the payroll tax that's not used to fund Medicare/Medicaid, the Social Security disability program, and the Social Security
supplemental program for survivors. At one time, the 401Ks and 403Bs contributions in your pay were not subject to the payroll tax (prior to Reagan's
Social Security tax increase). I see no real need for new programs, new accounts, and new bureaucracy.