Thursday, December 02, 2004

Social Security Privatization Gains Steam

Fortunately, privatizing Social Security is precisely what the Bush administration is trying to do, and if this report is correct, Bush will push for it soon, and with a more ambitious plan than expected. One senator quoted here says that he sees a "six-month window" for reform—and the Bush administration is considering shifting up to 4 percentage points of payroll tax into private accounts. But will those accounts be government controlled?

"Social Security Reform Mulled," Donald Lambro, Washington Times, 12/2/04

"Participants in these closed-door policy-making briefings say that Vice President Dick Cheney's office has become a player in the meetings and that senior officials are considering plans that would allow investments of up to 4 percent of payroll taxes, one of the three options proposed by the president's Social Security reform commission in 2001.... Both Derrick Max, executive director of the Alliance for Worker Retirement Security, a broad-based business coalition that has been lobbying for Mr. Bush's plan and whose members also have participated in administration briefings, and another White House adviser, who asked to remain anonymous, predicted the accounts would be larger than 2 percent but less than 4 percent. One participant in the White House meetings said that the emerging plan 'will be similar to the federal retirement system' which allows government employees, including members of Congress, to invest their pension contributions in mutual stock and bond funds among other investment vehicles."

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