John Sununu in Real Change, by Rep. Newt Gingrich (R, GA)


On Social Security: Proposed bill to invest 50% of FICA in personal accounts

We will have to rethink Social Security because of our new ability to live longer. Everyone knows Social Security is going bankrupt. By 2017 Social Security will start running cash deficits. The trust funds run out in 2042.

Suppose that workers were free to save and invest, in their own personal accounts, up to roughly 50% of what they currently pay in payroll taxes. Employers would contribute the same amount to their workers' personal accounts out of the payroll taxes they currently pay on behalf of their employees. This plan was proposed in a bill by Rep. Paul Ryan (R-WI) and Sen. John Sununu (R-NH). Lower income workers would be allowed to invest a slightly higher percentage of what they currently pay in payroll taxes, and higher-income workers a little less.

If a personal account pays more than the Social Security benefits it replaces, [the taxpayer] gets to keep the gain. If the account is insufficient to pay for all the benefits it replaces, the government pays the difference.

Source: Real Change, by Newt Gingrich, p.149-152&158 Dec 18, 2007

The above quotations are from Real Change:
From the World that Fails to the World that Works
, by Former Speaker of the House Newt Gingrich.
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Page last updated: Feb 21, 2019