Focus Point - End Of Social SecurityCommentary by Pete du Pont
June 20, 2001
I'm Pete du Pont with the National Center for Policy Analysis. The end of social security is now 15 years away.
That's when tax money paid in won't cover benefits paid out.
Astonishingly, there are still pols and pundits who say we should cut benefits or raise taxes. But the former would be political suicide, and won't happen.
NCPA calculates when today's 18-year-olds retire in 2050, their kids will face 17 percent payroll taxes - or 33 percent with medicare and benefits included.
Raise income taxes to cover the deficit? Sure, if you want to increase them 17 percent. Issue debt? Count on an additional $7 trillion by 2030 and that would just be the start.
There's only one realistic solution: let workers invest in the market or buy bonds to finance their own retirement.
The one million state and local government employees who opted out of social security - before congress made it illegal - have incomes up to 7.5 times higher than social security retirees.
It's not just a good idea. It's the only one.
Those are my ideas, and at the ncpa we know ideas can change the world. I'm pete du pont. Next time, the village idiot.