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Thursday, September 22, 2011
All this talk about Social Security Reform I believe is healthy as long as the proposals are about reforming this critical Social Insurance program. As long as the proposals are designed to improve this program not to end the program or privatize the program. But whatever the proposal is, it has to include Disability Insurance which is also part of Social Security. So however we decide to reform Social Security, it has to be done in a way that doesn't hurt Disability Insurance. And if anything improves Disability Insurance to make that program as strong as it can be as well. My ideas for Social Security Reform gets to, choice and competition as well as decentralization. Not privatization which is a different concept, privatization is about letting people. Take over with Payroll Tax investing it in Wall Street and anything else on their own. And if they make bad investments, too bad for them or they end up getting bailed out by Tax Payers. Two options are horrible, as a country we are not going to let Senior Citizens starve and go without income. At least not anymore and we are not going to bail out people who made bad investments with their own money. So we have to reform Social Security in a way to avoid bot potential disasters.
What choice and competition is about in Retirement Planning or as I would put it. Freedom of Choice in Retirement Planning is about, to give people for freedom and ability to plan their own retirements. Which is called Social Security Plus, keep the Payroll Tax intact. Except raise it on people who can afford to pay more to fix the financing and that the current Payroll Tax. Would just be there to fund a base income for people on Social Security. But what Social Security Plus is about, is an additional fund or tax that people could on their own or not. Set up for themselves to help them finance their own retirement, that they would pay into and their employer would match. That they could invest in the Stock Market as well as other business opportunities as long as they don't take that money out to spend. Until they are eligible to retire and the money thats put into a Personal Retirement Account, not my term by the way would be Tax Free. Like an IRA or Individual Retirement Account which are Private Retirement Accounts as well.
And as far as decentralization and reforming Disability Insurance goes, this might be the only thing that I agree with GOV Rick Perry on of Texas. And maybe Immigration Reform as well but we have slightly different approaches. Turn Social Security over to the States in this sense, each State would have their own version of Social Security with their own program. But they wouldn't run them just regulate them like the FEDS as well. Each State would have their own version Social Security that would be a Semi Private Non Profit Supplemental Pension Program. And get the Administration and Congress's hands off of it. And with Disability Insurance, anyone physically and mentally capable of working at least Part Time. Would be required to or at least looking for work and getting trained for work. And Disability Insurance would be required to help them with that. Which would also be my approach with Unemployment Insurance.
You can't reform Social Security without doing it in a way that doesn't hurt Disability Insurance because they are both part of the same program. And both have populations that depend on it in order to survive, pay their bills, eat etc. So we have to reform Social Security as a whole in a way that can only make this critical program stronger.
Click on the link of the blog to see a video from AEI on Disability Insurance