Epiphanyblog

All about ideas…

Social Security on the chopping block again

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According to the Hill, Rep. Jeff Sessions (R – TX) introduced a bill to privatize social security completely within 15 years.

Rep. Pete Sessions (R-Texas), who chairs the National Republican Congressional Committee, and several other Republicans introduced the Savings Account for Every American (SAFE) Act. Under the bill, workers would immediately have 6.2 percent of their wages sent to a “SAFE” account each year.

That would take the place of the 6.2 percent the workers now contributed to Social Security.

Another 6.2% is sent to Social Security by employers. Under the Sessions bill, employers would continue to make this matching contribution to Social Security, but after 15 years, employers could also send that amount to the employee’s SAFE account.

In other words, at the end of 15 years, no more Social Security. Session’s doesn’t say if the money in a worker’s account will end up in the hands of Wall St to manage, a la 401(k)s and IRAs, or if there’s another safe vehicle, like Treasuries, that will be the investment asset. But I’d bet on Wall St. Sessions gets a boatload of donations from the financial services sector.

Once upon a time, we had a Republican party that actually cared about the people. I wonder where they went?

UPDATE: Via the Washington Monthly, one of the six co-sponsors is Republican Caucus Chairman Jeb Hensarling of Texas. This is relevant because it means two members of the GOP leadership are on board with this proposal.

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Written by Valerie Curl

June 7, 2011 at 5:09 PM

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