Private Soc Sec

When Bush 43 was president he proposed privatizing social security but this was not acceptable to the congress so the idea was dropped. Bush wanted to save the program from its projected bankruptcy but there is another benefit that was not discussed. Currently the payroll tax (social security tax) is 6.2% for the employee and the same for the employer. About 1.2% must be set aside to cover claims for disabilities and survivor benefits, leaving 5% from employee and employer to privatize. These funds would be transferred over a 10 year period starting at one half of one percent and increasing by that amount each year. At the end of ten years ten percent of pay would be going into private accounts. How would these funds be invested? Federal employees have had such a plan since 1987 and surveys show they are very satisfied. They have access to ten funds and they can select between these funds.
The major benefit to private accounts is ownership. When you reach retirement age you own the money in the account much like a 401K account. Under the current social security plan the benefits ends at your death or in the case of joint accounts at the end of your death and the death of your spouse. If you and your spouse should die shortly after retirement nothing passes on to your heirs. This is particularly devastating to single black males who have a short life expectancy and on average collect only a fraction of what white females collect.
There is also a large economic benefit to the society. These payments, amount to over 600 billion dollars per year and this is money that, for the most part, would be invested in the private economy. These dollars would mean private sector jobs.
Over the next ten years this means transferring 6 trillion dollars from government coffers to private business and many in congress are ideologically opposed to this. These are individuals who that the government can determine what is best for the country. The government can pick and choose who gets what.
The elections coming up next November will determine whether the 50 year trend of more government control will continue or whether voters will decide they know best on how to spend their money.