The Real News: Paul Jay- Interviewing Bill Black: 'Drums Beating to Privatize Social Security'

Source:The Real News Network- TRNN., talking about Social Security reform.

"Bill Black: A group of Democrats called "The Third Way" are working with President Obama towards the "grand betrayal" on social security."

From The Real News Network

I'm not for full privatization of Social Security. I want to guarantee all money thats paid into it to be paid out to the people who paid into it once they retire, meaning I wouldn't allow workers to take money out of current payroll taxes to invest in their own Individual Retirement Account or IRA. But what I am in favor of is what's called Social Security Plus, something that Congressional Democrats proposed about ten years ago.

Under Social Security Plus, current payroll taxes the way they are as it relates to Social Security, but allow workers to voluntarily increase their own payroll taxes by let's say an additional three percentage points to let's say 9%, where they could take 1/3 of that which would be matched by their employer. If they work for themselves , then they could increase their own payroll taxes by 6% and people could use this money to create their own IRA out of Social Security Plus, to invest as they see fit through another job or other investments, stock market and so-forth. Tax free but they wouldn't be allowed to spend any of that money until they are eligible to retire.

We have two problems as I see it as it relates to Social Security: a long-term funding issue with Social Security. And a problem with our pension system where Social Security is still being depended on to keep retirees out of poverty. Where what we could be doing instead is empowering people to set up their own pensions and be able to retire more comfortably. So we don't have so many people on Social Security in the future who can't live without it.