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STEVE BEREN ON SOCIAL SECURITY
Regarding Social Security, a balanced plan to protect benefits requires reform of the current system, as follows:
#1: Revenues (principle, accrued interest, and any surplus) should be reserved for Social Security and not raided by Congress.
#2: Younger workers should be given the option of investing a portion of their payroll tax in private accounts.
#3: A portion of Social Security assets should be invested in stocks and bonds instead of U.S. Treasury securities.
This combined approach will ensure promised benefits to those who’ve paid into the system under existing rules, while reducing future deficits and allowing a decrease in the Social Security payroll tax.
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