This study describes a substantial, progressive, personal account option for Social Security, and will demonstrate how it would provide a broad array of powerful benefits and advantages for working people across the board, including low-income workers and minorities. The proposal is based on allowing workers to shift 5 percentage points of the payroll tax into the account, with the option doubled to 10 percentage points for the first $10,000 of wages. The study explains how such an option would completely solve the long term financing crisis of Social Security without benefit cuts or higher taxes. Indeed, the reform would ultimately provide higher benefits and lower taxes.

Such reform would advance the traditional, mainstream values of both the Democratic and Republican parties. Progressive Democrats should join President Bush in campaigning on such Social Security reform as the centerpiece of the domestic agenda next year.