Wednesday, March 16, 2005

Solvency First…

Today the U.S. Senate voted 100-0 to make Social Security a priority. I am not real confident that this is anything more than theatrics. The Republicans and Democrats are miles apart on what to do. The Republicans are against raising the ceiling for payroll deductions and personal accounts. The Democrats have suggested nothing other than it’s not a crisis and no personal accounts. From all I have read, none of these options is going to make Social Security solvent. Personal accounts are going to create a huge shortfall in the short run. If a person were to take advantage of the proposed 4% amount into a personal account that is money that will not go into the fund for current Social Security recipients. Where is this difference going to come from?
The Democrats want to do nothing and saying its not a crisis is like ignoring a toothache. We all know the day will come when Social Security will be in serious trouble. They also are arguing what the actual year it goes into the red. Does it matter if its 2017 or 2020 or 2022, as they argue in Congress? What if they are wrong and it turns out to be 2010? It needs to be put on the path to solvency.

Democrats, quit saying it’s not a problem and put a few ideas and options on the table.

Republicans, stop pushing the private accounts until the system becomes solvent. If private accounts don’t help the issue of solvency, take it off the table.
If raising the ceiling is what it will need, put it on the table.

Stop spinning your wheels on this issue and put solvency first…


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