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Subject:  Re: Help! My Social Security is in Lucent Date:  7/27/2001  10:12 AM
Author:  salaryguru Number:  46577 of 876050

This article is good at pointing out why a plan to allow investing part of your SS in the stock market won't solve the impending SS solvency problem. But, in general, I am a little disapointed in the lack of honesty from both sides of this debate.

Providing a 2% self investment tax may or may not be a good idea, but it will not solve the SS solvency problem -- it will make it more acute. Efforts to sell this idea as part of plan to fix Social Security are intellectually dishonest. This plan should be considered separtately as an augmentation of 401K legislation because what the plan really amounts to is a forced 2% 401K contribution.

But no one wants to talk about what the solution to the Social Security solvency problem is. There are only two possible solutions: 1) increase SS tax astronomically, or 2) cut benefits significantly (this could be done in several ways including reducing COLA, means testing, or simple reduction in payouts). Until our politicians get serious about one of the two solutions above, all the SS debate is smoke screen.

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