'How Social Security Might Change' great overview article from the WSJ.

[pinto]

How Social Security Might Change

By JACKIE CALMES
January 30, 2005

Through two election campaigns, voters have heard President Bush call for fixing Social Security by letting them carve out personal retirement accounts. Now many are surprised to learn that such accounts aren't a solution by themselves -- not without future benefit reductions, more payroll taxes, or both.

What exactly are the other changes that might be made to Social Security?

That is the question administration officials have only just begun addressing as Mr. Bush works with Congress to hash out the devilish details for averting Social Security's projected insolvency before midcentury. Officials say he may suggest more details Wednesday in his State of the Union address, though no one expects him to be specific about a comprehensive plan until late February, if then.

To date, Mr. Bush has just offered "principles" for legislation. Chief among them: His demand that it must allow workers to divert some of their Social Security payroll taxes to personal accounts, in hopes of earning higher returns on investments. But less well advertised is that, in return, workers would forfeit some traditional benefits when they retire. Even with that, private accounts not only wouldn't restore Social Security's 75-year solvency, they would add to its immediate shortfall: Taxes diverted to workers' own accounts would have to be made up somehow, to pay today's retirees.

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http://online.wsj.com/public/article_print/0,,SB110703449985340148,00.html

[stevebreeze]

1. one thing this and most articles on SS don't mention.private accounts make

SS more regressive. Since the money you would put in would be only your own, the poor on SS would get less then now, and the rich would get more. Funny how Bush's policies always work out that way?

[The Zanti Regent]

2. Private accounts also eliminate survivor and disability benefits.

I guess the assholes at the Wall Street Pravda cannot wait for the poor farms to reopen!