Wednesday, December 27, 2006

Retirement security - Bull Dog Pundit asks: “What’s not to like about Sessions’ Social Security reform plan?”

Only this: the plan, as I understand it, is not a reform plan but rather an “add-on.” That is, it’s roughly a federal 401(k) which would allow Americans to save money strictly for retirement tax-free. Washington probably couldn’t afford some kind of matching contribution, like corporations, but the tax advantages would still make it an attractive plan especially for younger workers. Sessions’ proposal wouldn’t touch Social Security but, once Americans realize the difference in return rates between the two programs, it might serve to cut off Social Security’s political support.

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