NCPA - National Center for Policy Analysis

There Gore Goes Again

May 5, 2000

Vice President Al Gore is accusing Texas Gov. George W. Bush of having a secret plan to gut Social Security, reports the White House Bulletin, for proposing that workers be allowed to save part of their Social Security payroll taxes in personal retirement accounts. Gore also claims in a campaign press release that Bush adviser and economist John Goodman, president of the National Center for Policy Analysis, supports "abolishing Social Security entirely."

Goodman says he has never called for the abolition of Social Security, but has "consistently proposed reforms necessary to save Social Security for the future."

Bush has not endorsed a specific Social Security reform proposal, but an NCPA Fact Sheet says the principles that should govern a plan for personal Social Security retirement accounts should include:

  • Those now drawing Social Security or nearing retirement age will not be affected.
  • Younger workers will be allowed to divert a portion of their Social Security payroll tax -- probably 2 to 2.5 percent -- into individual investment accounts.
  • Individuals will be able to choose among a number of qualified professional money management firms to invest the money in their accounts.
  • The government will guarantee that future Social Security beneficiaries will receive no less than they would have under the current system.

In a news conference Thursday, Democrats -- including Senators Bob Kerrey and Patrick Moynihan -- urged Gore to keep an open mind on the idea of investment accounts.

Source: NCPA News Release, May 4, 2000; White House Bulletin, May 4, 2000; Gore 2000 press release, May 3, 2000.

 

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