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America’s Social Security System is in Desperate Need of Reform |
By: Courtesy of ARA Content |
The presidential candidates have debated dozens of times so far and they finally seem to agree on something: there's nothing wrong with the Social Security retirement system that "growing" the economy won't solve.
”The notion that the economy can grow its way out of the Social Security crisis is ludicrous,” says James M. Hamilton, national director of For Our Grandchildren -- a non-profit organization whose purpose is to raise awareness and understanding of all Americans regarding the need for Social Security reform.
Hamilton says there was a time when folks laughed at "trickle-down" economics. Now the candidates say it could work after all. “They think an improving economy means the average American will be doing better financially, and able to afford the higher payroll taxes that soon will be necessary to keep the Social Security retirement program operating, but that isn’t necessarily true,” he says.
Most Americans pay $1 out of every $8, before taxes, just to support the program. Hamilton predicts soon we’ll be paying $1 out of every $5. And it probably won’t stop there. Many Europeans already pay $2 out of every $5 to support their Social Security systems. Add federal, state, and local taxes on top of this and the tax burden becomes too much for middle and lower income Americans.
Hamilton says the candidates are using the "economic growth" argument because “they don't think most of us will listen. They believe we’ll just ignore the issue if they spout a few numbers and point to some rosy economic projections.”
In reality, the American public isn't ignoring this. They know there’s a big problem ahead that must be fixed. “It’s surprising none of the candidates knows this yet,” says Hamilton. “If they really believe in protecting low-income Americans, they’re not doing a good job of showing it. After paying their taxes and their monthly bills, most folks have nothing for savings, let alone planning for retirement.”
Hamilton says if they had the choice to set a little aside out of what they already pay in payroll taxes, by the time they reach retirement age they’d have a nice next egg and maybe something for their heirs too.
A December 2003 FOX News poll found 67 percent of Americans support putting up to 5 percent of their Social Security contributions in a private investment.
”It's not the economy, stupid! It's the choice,” says Hamilton.
To learn more about the efforts of For Our Grandchildren, or to join the cause, log onto www.forourgrandchildren.org and click on volunteer.
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