IPI Publication Press Release
IPI Policy Report - # 176
Related Publication Title:
A Progressive Proposal for Social Security Private Accounts
Released by Sonia Hoffman on 10/03/2003
IPI Policy Report - # 176
Related Publication Title:
A Progressive Proposal for Social Security Private Accounts
Released by Sonia Hoffman on 10/03/2003
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Executive Summary
Press Release (10/03/2003)
Media Advisory (06/13/2003)
Media Advisory (12/17/2003)
Media Advisory (09/02/2004)
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Dallas, TX: The Institute for Policy Innovation (IPI) has released a new study promoting a plan for private Social Security accounts that eliminates Social Security’s long-term finance problems—cutting benefits or raising taxes—and proposes a 5 percent point privatization contribution within a progressive structure.
Most other Social Security plans—including those plans pushed by the President’s Social Security task force and other think tanks—advocate accounts in the range of 2 percentage points. While two percent contributions may be safe, such small amounts will not solve the long-term Social Security problem.
“Some reformers are urging President Bush to use his political capital to push through a package of substantial long-term benefits cuts, along with a small personal account of roughly 2 percentage points,” says Peter Ferrara, author of the proposal for IPI. “But that may well turn into a politically suicidal 'Charge of the Light Brigade' for the president, and not nearly achieve the true and full goals of the reform.
A two percent account option would be too limiting and lacking in any real gain for workers that too few workers would be expected to exercise the option. In addition, 2 percent accounts do not eliminate Social Security's long term finance problem.
“Instead, the president should use his substantial clout to push through a complete and progressive personal account reform, based on 5 percentage points of the payroll tax, along with a progressive doubling of that on the first $10,000 of wages.”
Who could argue against a plan providing:
- The Biggest Tax Cut in World History,
- The Biggest Debt Reduction in World History,
- The Biggest Wealth Creation Device in World History,
- A Dramatic Broadening in the Distribution of Wealth,
- Greater Social Equity for Minorities?
“This progressive, populist reform plan with a large personal account option and no other changes to the Social Security benefit structure would produce a sea change of economic benefits for working people, and a legacy of Rosseveltian proportions,” adds Mr. Ferrara.
This information is taken from IPI Policy Report “A Progressive Proposal for Social Security Private Accounts” by Peter Ferrara for the Institute for Policy Innovation, a national think tank based in Dallas, Texas. For copies of the report, visit www.ipi.org or contact Sonia Hoffman at (703) 912-5742 or shoffman@ipi.org. The author is available for interview.
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