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Politics : The Citizens Manifesto
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To: RetiredNow who wrote (73)6/14/2005 7:22:24 AM
From: Road Walker  Read Replies (1) of 492
 
re: I included COL adjustments in both the private account and the existing social security account. Those were figures after adjustment for inflation of 3% per year. So I was assuming that the person's income was $30K per year in today's dollars with a 3% COL adjustment every year.

I understand that. But you still need to address the folks making less than $30K per year. The Wal Mart employees at ~$17K. The current system takes care of those folks (albeit in a miserly way). If we want to sell it, it's got to work for everybody at least as well as the current system.

Are you buying into only implementing private accounts for people under 30? Frankly, I think that's a great idea, and may be doable without ballooning the deficit. Somebody could probably do a cost analysis and set the age based on the increase in FICA taxes it would require. The age might be 30, 25, 32, whatever.

re: A tax-exempt bond fund will return you 5-6%. That is an after tax return.

I presume that the personal accounts will grow tax free, right? You wouldn't want the lower returns of tax free investments.

re: and the long term stock average of 10.5%

That is in no way written in stone.

But the biggest problem I see is that the polls show that people just don't like the private account idea. And they don't trust the stock market. That might also be addressed by the "only under 30 proposal" because the young people are more in favor of private accounts.

John
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