Well, Trish, I do not think that private accounts
will address the problem of solvency. The lack of
private accounts did not cause that problem and will
not fix it. Private accounts will address a extream
long run problem of SS not returning enough to
actually retire on. I am talking maybe help Benjamin
and Amber. it might give them more.
The solvency problem was caused by the funds not
being invested as they came in, but rather it was
spent. That is the solvency problem. The money is
gone. There is going to be either an increase in tax
revenues or a defiecit to cover those IOU’S. revenues
can go up by there being growth in the economy or a
heavier tax rate. Thing is these two work against each
other. Higher rates makes slower growth and maybe less
money to tax at the higher rate and thereby less
revenue.
I think maybe the tax code change to light the fuse
under the economy should have came before SS change.
But that is another discussion. Or maybe not, you all
decide.
Private accounts could in short run cause more of
the IOU’S to be called in quicker and have defiecits.
It would however force SS funds to be invested
instead of spent and move away from what caused the
solvency problem helping our children.
There has to be more than just private accounts,
there has to be more than just raising taxes or
lowering benefits.
I am afraid there is a pill that has to be taken.
Got to do a little more than say I am against this
and for that. The plan has to be comprehensive.
--- Kendall David Corbett <[log in to unmask]> wrote:
> Trisha,
>
> My feeling is that private accounts will not save
> social security. I think they'll do the opposite.
> They'll allow funds to be diverted from the social
> security trust fund by those who make enough to add
> to their private accounts, and those who don't make
> enough to do that, or are not "traditional retirees"
> won't be able to put enough into a private account
> to make a difference when they're ready to retire,
> or need the funds
>
> Kendall.
>
> -----Original Message-----
> From: Trisha Cummings [mailto:[log in to unmask]]
> Sent: Thu 3/31/2005 11:25 AM
> To: [log in to unmask]
> Cc:
> Subject: Re: Question on SS
>
>
>
> Thank Kendall,
>
> And I would be curious to know, where you stand on
> this. I am still in the research phase, and wantt o
> hear people thoughts. I think more brains help with
> better decision making and clarifying ones position.
>
> Trisha
>
> -----Original Message-----
> From: St. John's University Cerebral Palsy List
> [mailto:[log in to unmask]]On Behalf Of
> Kendall David Corbett
> Sent: Wednesday, March 30, 2005 2:41 PM
> To: [log in to unmask]
> Subject: Re: Question on SS
>
>
> Trisha and Ken,=20
>
> This is a fact sheet on changes in Social Security
> and the impact those
> changes will potentially have on people with
> disabilities. I got the
> fact sheet, and others on other issues at a
> conference I attended the
> first of the month in DC sponsored by UCP, AUCD,
> AAMR, The Arc, and
> another organization I'm blanking on now.
>
> I'll paste the body of the fact sheet below as I'm
> not sure what various
> people's servers will do to an attachment.
>
> SOCIAL SECURITY REFORM
> Background
> People with severe disabilities are
> eligible for cash benefits
> under the Social Security Act: Title II includes
> the Old Age, Survivors,
> and Disability Insurance programs and Title XVI
> includes the
> Supplemental Security Income (SSI) program.
> Generally, Title II
> disability beneficiaries are eligible for the Title
> XVIII Medicare
> program; SSI beneficiaries are eligible for the
> Title XIX Medicaid
> program. Over 6 million people with disabilities
> receive Title II
> benefits. Over 5.4 million people with
> disabilities receive SSI
> benefits. Many people rely almost entirely on
> their cash benefits for
> their daily needs and rely upon the medical
> benefits also available to
> them. =20
> Solvency of the Social Security Trust Funds
> The disability community has consistently raised
> concerns about Social
> Security reform proposals to address the long term
> solvency of the
> Social Security Trust Funds. Numerous bills have
> been introduced in
> several Congresses. In January 2001, the General
> Accounting Office
> issued a report that addressed some of the
> disability community's
> concerns about the negative impacts many of the
> reform proposals would
> have on people with disabilities. In addition, in
> December 2001, the
> President's Commission to Strengthen Social
> Security issued its final
> report which only briefly addressed issues
> regarding the Social Security
> Disability Insurance (DI) program and the SSI
> program. Throughout, the
> disability community has sought to educate Members
> of Congress and other
> policymakers about the importance of the Title II
> Old Age, Survivors,
> and Disability Insurance (OASDI) programs to people
> with disabilities
> and the potential impact of reform proposals on
> Title II beneficiaries
> with disabilities.
> More than one-third of all Social Security benefit
> payments are made to
> over 17 million people who are non-retirees,
> including over 5 million
> disabled workers, nearly 1.5 million children of
> disabled workers, and
> over 750,000 disabled adult children covered by the
> survivors,
> retirement, and disability programs. Other
> non-retirees include
> non-disabled survivors and dependents. People with
> disabilities draw
> benefits from all parts of the Title II trust
> funds:=20
> * Disabled workers and their dependents,
> including their disabled
> adult children, draw benefits from the DI
> program;=20
> * Retirees with disabilities draw retirement
> benefits;
> * Disabled dependents of retirees, including
> disabled adult
> children, draw their benefits from the retirement
> program; and=20
> * Disabled survivors, including disabled
> adult children and
> widow(er)s, draw their benefits from the survivors
> program.
> The Title II programs, as insurance against
> poverty, are
> essential to the protection of people with
> disabilities. The programs
> are unique in providing benefits to multiple
> beneficiaries and across
> multiple generations under coverage earned by a
> single wage earner's
> contributions. Workers earn coverage for
> themselves and their family
> members through payment of Social Security taxes
> during their work
> years. The insurance protection they receive is
> targeted to prevent
> poverty in old age, in case of disability, or where
> there are dependent
> survivors after the death of the worker or retiree.
> Proposals that
> would partially or fully eliminate the current
> broad-based sharing of
> risk (social insurance) and replace it with the
> risks of private
> investment would be harmful to people with
> disabilities. Privatization
> of the Social Security trust funds would shift the
> risks from the
> federal government back to the individual,
> resulting in a devastating
> impact on people with disabilities and their
> families. The basic safety
> nets of retirement, survivors, and disability
> insurance must be
> maintained.=20
> In June 2004, the Congressional Budget Office
> released a report on the
> financial state of the Social Security Trust Funds,
> finding that the
> program will remain solvent longer than previously
> estimated. According
> to the report, the long-range deficit in Social
> Security is only about
> half as large as projected by the Social Security
> Trustees earlier in
> the year. In addition, the Social Security Trust
> Funds will be able to
> pay full benefits for almost 50 years, until 2052,
> a decade longer than
> previously projected. =20
> Action Taken by Congress and the Administration
> In his 2005 State of the Union address, President
> Bush argued that the
> Social Security system is in crisis and revealed
> some of the details of
> his proposal for privatizing a portion of the
> Social Security trust
> funds by creating private accounts for individuals.
> He indicated that,
> under his plan, workers would be allowed to put 4
> percent of their wages
> into private retirement accounts rather than into
> the Social Security
> trust funds. He did not indicate how the losses
> from the trust funds
>
=== message truncated ===
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