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Away From Home

Wednesday, June 22, 2005

Private accounts shot down

"Private accounts" as a solution for Social Security have been shot down, hopefully for good. From the AP:


With the acquiescence of their leaders, key House Republicans are drafting Social Security legislation stripped of President Bush's proposed personal accounts financed with payroll taxes and lacking provisions aimed at assuring long-term solvency.

Instead, according to officials familiar with the details, the measure showcases a promise, designed to reassure seniors, that Social Security surplus funds will be held inviolate, available only to create individual accounts that differ sharply from Bush's approach.

Under current law, any Social Security payroll tax money not used to finance monthly benefits is in effect lent by Social Security to the Treasury, which uses it to finance other government programs. Government actuaries say the surplus is expected to vanish in 2017 when benefit payments exceed payroll taxes collected.

In addition, the GOP bill "doesn't deal with solvency," according to another official, indicating it would avoid the difficult choices of curbs on benefits, higher taxes or changes in the retirement age needed to implement the president's call for long-term financial stability.


I consider this a victory. As I've previously ranted in this space, private accounts are a very bad idea. However, the current system, which permits the government to loot and pillage Social Security funds Viking-style, was also a very bad idea.

This report indicates that the new legislation will fix these problems. No private accounts, and no marauding the "lockbox" (what a laughable term).

I'm quite interested in seeing what this "individual accounts" statement is all about, however.

1 Comments:

  • I wonder what kind of expression Scott had on his face as he typed this. Could it be:

    -The "I told you so" smirk?
    -The "I'm holding back mountains of laughter" face smush?

    or was it...

    -mouth wide open with peals of maniacal laughter bursting out: "I knew it would happen, I knew it!"

    By Blogger Logan C. Adams, at 6/22/2005 08:04:00 PM  

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