Cynical Nation

It appears that the Bush administration will soon unveil a plan to allow workers to own a portion of their Social Security accounts. The details won't be in until next month, but it looks like they're considering allowing workers to contribute 4% of their FICA taxes to private accounts. At first glance, the 4% figure seems bolder than the expected 2% -- but then comes the fine print. The president's commission also recommended capping contributions at $1,000 a year. That means that while someone salaried at $25K can contribute the whole 4%, someone earning $50K will effectively be limited to 2%. I'm not sure why they would structure it this way, but my guess is to inject an element of progressivity into the plan in an effort to pre-empt the charge that privatization would unfairly benefit high income earners.

Who knows? But whatever the details, this is truly encouraging. I never thought I would see the day when privatization was actually seriously proposed by a sitting president. Granted, it will be an uphill battle. Bush may not succeed, but I do not doubt that he will try. Say what you will about him, but he is not afraid to cash in political capital to fight for something he believes in, and he has a largely friendly congress to work with. It's a bold move, and it may not yet be politically possible. But if it is, this president will do it.