Monday, March 14, 2005

'New' Social Security? Not Easy
Today's Wall Street Journal has an article that will make you stop and pause as to whether
we should even consider diverting Social Security taxes into private accounts. It's just one of the
"little-discussed logistical mountains" that this proposal faces. Read on and see if it doesn't make
your jaw drop the way it did mine:

"When the Government created retirement-investment accounts for federal employees in 1987, pamphlets summarizing the Thrift Savings Plan for its three million potential participants filled 18 tractor-trailers.

If Americans are allowed to divert a portion of their Social Security taxes to private accounts, the government could have to distribute introductory brochures to 70 million people in the program's first year alone."

It does get worse when they start contemplating the massive effort that will be required to educate the public, enroll workers, and answer what experts say could be hundreds of millions of questions.

To add insult to injury, it could take 15 months before money would be credited to a private account. This is because most employers tell the government only once a year the amount individual workers earn. For the self-employed, they estimate it could take nearly two years.

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