Neocon,
You are correct in your calculation, but to put it in terms that flatsville and even brainflagellationjack can understand, I think we need to present it another way. Every time our employer pays us, he deducts 6.2% of our earnings that goes to the social security "trust fund". Your employer pays an equal figure of 6.2%, so the entire amount per employee that goes to the social security "trust fund" every payday is equivalent to 12.4% of each employees earnings, i.e., payroll tax. If Bush's plan is implemented, 10.4% of each employees earnings will go to the social security "trust fund" while the remaining 2%, that was formerly part of the 12.4%, would go into a private savings account, in the individual's name, if they opted for partial privatization.knc |
