Could a Sovereign Wealth Fund Be the Grand Bargain for Social Security? - AMAC & Business Insider
Jason Lalljee writes here that as senators grapple with trying to add 75 years of solvency to Social Security, the idea of a sovereign wealth fund has come up. Sen. Mitt Romney (R-UT) said this week that such a fund would allow the US “to be able to borrow at low interest rates and invest in the growth of our economy, and perhaps economies of other nations as well. That’s what other retirement funds do around the world, in corporations and in the railway world, and it creates a substantial source of revenue.” He added that if the investments “didn’t do terribly well, we would kick in through other sources and make sure that we don’t threaten in any way the benefits of recipients.”
An initial investment could be $1.5 trillion or more. If the initial influx of cash didn’t see at least an 8% return, the plan would allow raising the maximum taxable income and the payroll tax rate. Full article here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved with no tax increases by changing cost of living adjustments, the retirement age, and delayed credits. AMAC advocates for a bipartisan compromise, “The Social Security Guarantee Act,” taking selected 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 voluntary plan to allow all earners to have more income 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.