Monday, January 24, 2005

Kotlikoff, Long Time Foe of Social Security, Disses Bush Plan

The investment option is no real option at all. It's a side show to divert attention from the main point of the plan -- wiping out most of our kids' benefits and thereby raising their net taxes. Those who don't invest will end up paying the same payroll taxes, but receive far less in benefits. And those who do invest will end up paying lower payroll taxes, but will suffer additional benefit losses that actually exceed the value of their payroll tax reduction.

Fixing Social Security is imperative. But doing so by eating our young is hardly the answer.

EL - Real interesting as he is a favorite economist of conservatives supporting reforming Social Security out of existence.

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