Wednesday, November 10, 2004

Bush Moves to Privatize Social Security


Associated Press

WASHINGTON - Fresh off re-election, President Bush is dusting off an ambitious plan to overhaul Social Security, a controversial proposal that had been shelved because of politics and the administration's focus on tax cuts and terrorism.

Bush envisions a framework that would partially privatize Social Security with personal investment accounts similar to 401(k) plans.

A starting point is a plan proposed by a presidential commission in 2001 that would divert 2 percent of workers' payroll taxes into private accounts. The remaining 4.2 percent - and the Social Security taxes employers pay - would go into the system, helping fund benefits for current retirees. That leaves a shortfall of at least $2 trillion to continue funding benefits for those current retirees. continue

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