Policy Point-Counterpoint: Social Security Reform
Bryant, Claudia, International Social Science Review
Since President George W. Bush delivered his State of the Union address on February 2, 2005, in which he formally introduced his proposal to incorporate personal/private accounts into the Social Security program--one's terminology varies depending on their political perspective and support for or opposition to the plan--the issue of reforming the Social Security system has been hotly debated by political leaders, pundits, and citizens alike. Regardless of one's views toward the plan, individuals on either side of the debate have yet to question how the president's proposal would alter the financing scheme currently used to fund the Social Security program. At present, 6.2 percent of workers' salaries are invested in the Social Security trust fund. Employers match this contribution for each of their employees. Those who are self-employed pay the entire 12.4 percent themselves. Under the president's proposal, individuals would be allowed to invest up to four percent of their payroll tax contribution to Social Security in individual accounts rather than having those funds deposited into the federal government's trust fund. Upon retirement, individuals would live off a reduced Social Security benefit plus the income from their investments rather than from the traditional stipend provided by the Social Security Administration. The remaining 2.2 …
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Publication information: Article title: Policy Point-Counterpoint: Social Security Reform. Contributors: Bryant, Claudia - Author. Journal title: International Social Science Review. Volume: 80. Issue: 1-2 Publication date: Spring-Summer 2005. Page number: 51+. © 2008 Pi Gamma Mu. COPYRIGHT 2005 Gale Group.
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