A presidential candidate’s radical Social Security reform: The 6.2% Plan - The Motley Fool & AMAC
Keith Speights profiles Libertarian presidential candidate Jo Jorgensen’s Social Security plan, perhaps the most radical transformation since the program’s founding in 1935. Never heard of Jorgensen? Neither has most of America. Third party candidates rarely gain traction in our history. But this candidate is serious about allowing any American to opt out of Social Security and to invest their 6.2% payroll taxes in individual retirement accounts. The caveat is they would receive no Social Security benefits at retirement. No one would be forced out of the system though. The author compares the plan to a similar one offered more than a decade ago by the CATO Institute. The young are predicted to flee the system. But what about people mid stream, who have contributed but are still far from retirement? It is suggested the U.S. government issue zero coupon bonds based on people’s past Social Security contributions. These bonds do not pay interest, but they are given at a steep discount and are profitable if held to maturity. Full article here.
The Association of Mature American Citizens (AMAC) takes a different approach, noting that Social Security must be preserved and modernized. This can be achieved by making modest changes in cost of living adjustments and the retirement age, with no additional taxes on workers. AMAC advocates for a bipartisan compromise, “The Social Security Guarantee Act,” taking portions of bills introduced by former Rep. Johnson (R-TX) and current Rep. Larson (D-CT) and merging them with the Association’s own research. One component is Social Security PLUS, a new, voluntary plan that would allow all earners to have more income available at retirement. This component is intended to appeal especially to younger workers. AMAC is resolute in its mission that Social Security be preserved and modernized and has gotten the attention of lawmakers in DC, meeting with a great many congressional offices and their staffs over the past several years. Read AMAC’s plan here.
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