Focus Point - The Social Security PenaltyCommentary by Pete du Pont
February 01, 2001
I'm Pete du Pont with the National Center for Policy Analysis. A new study from the NCPA might help explain why privatizing Social Security's important.
Texas A&M researchers found the more education you have, the worse you're likely to do under social security. The study compares estimated tax payments to social security benefits that workers of various ages and education levels can expect to receive.
For today's 25-year olds, on average, a male high school graduate will pay almost $33,000 more in social security taxes than he'll receive in social security benefits.
A male college graduate will pay $63,000 more in social security taxes than he receives in benefits -- and if he has a graduate degree, the loss grows to $93,000.
But here's the key: Despite the fact that the Ph.D. loses more than the high school grad, everybody loses thousands of dollars. And that's why privatization isn't some policy wonk's fancy. It's a way for you to own your money for retirement, not have it confiscated by your government.
Those are my ideas, and at the NCPA we know ideas can change the world. I'm Pete du Pont. Next time, your government (not) at work.