TABLE OF VARIOUS SOCIAL SECURITY PLANS

 

 

 

Balancer

Ultimate Balancer and Tinkerer

Small Private Accounts with Progressive Indexing

President Bush’s Plan

Add-On

Ultimate Private Accounts

Miscellaneous

Bob Ball

 

1

2

3

4

5

6

7

8

Plan authors

Peter Diamon, Peter przag

Robert M. Ball

Robert Pozen

President Bush

Edward M. Gramlich

Peter J. Ferrara

Phillip Longman, Matt Miller

Bob Ball

Plan supporters

 

David R. Obey (D-WI)

 

 

Gene B. Sperling, Robt E Clay Shaw (Clinton camp)

Paul Ryan (R-WI); Sen. John Sununu (R NH)

 

Bob Ball

Solvency date

Forever? (birth rate problems?)

2078

Forever

Unknown

Unknown

Forever

Forever?

Forever?

Govt borrowing?

No

No

Yes

Yes

No

Yes

No?

Minimal

Private accounts?

No

No

Yes (2 points)

Yes (4 points)

Yes (1.6 points)

6.4 points

N/A

No

Raise taxes?

Raise cap (87% of 105000); 3% tax on high earnings; raise general payroll tax; tax new state, local, govt emps

Raise cap (90% of 145000); tax new state and local govt emps[1]

No

Maybe

1.6% for add-on private account

No

Reduce or eliminate taxes for people with children; possibly increase taxes for childless people (Longman)’ also, increase immigration; remember that eventually these added workers would be eligible for benefits

slightly

Reduce benefits

Yes, for workers 45 and younger, progressively

Yes, for affluent workers

No

Maybe (not for workers 55 or over);

April 28, 2005, Bush proposes indexing benefits for low income workers to wage raises, and for high income workers to cost of living, making the program relatively more protective of low income people in retirement

Yes, for affluent workers, and raise retirement age

No

Maybe for the childless; index benefits to prices rather than wages (Miller); use means testing; ask for voluntary turnbacks from the wealthy; index according to life expectancy

Slightly for more affluent retirees

Goal

Fiscal stability and protection of low income workers

Maintain same structure,  fiscal stability, protect low income workers

Reduce politicization

Increase self-sufficiency and ownership

Provide more self-sufficeincy without borrowing

Guarantee solvency and increase self-sufficiency

Address demographic and cultural problems

stability

Comments

Social justice

Social justice

 

 

 

Depends on economic growth

 

Let government invest in indexed stock funds to increase SS trust fund

 

 

 

 

 

 

 

 

Source: LA Times, Joel Havemann

 

I’ve highlighted descriptions that may well be negative. Looking at this chart, I like the “ultimate tinkerer” with voluntary add-ons.

 

Source:  Jonathan Weisman, “Competing Visions for Social Security,” The Washington Post, Feb. 24, 2005; Phillip Longman: The Empty Cradle;

Matt Miller: The Two Percent Solution.

 

Return to social security editorial

 



[1] Dennis Cauchon. “Can the rich, famous save Social Security: Solution works on paper but unlikely politically,” USA Today, June 1, 2005. Taxing all income would keep the system solvent, even if proportional benefits were paid to previous high earners as retirees.