Centrist Social Security Plan
By Arnold Kling
The plan contains four primary elements: a gradual reduction in future benefits; an increase in the payroll tax cap; an increase in the retirement age; and the establishment of personal retirement accounts. The plan puts great emphasis on fiscal responsibility – there are no transfers from general revenues to achieve sustainable solvency.
I am in favor of just about any compromise that includes personal accounts. My thinking is that once people see personal accounts in practice, their fears about personal accounts will diminish.