Reuters discusses AARP’s plan to strengthen Social Security by raising the payroll tax cap to $140,000, which they say would reduce the long-term shortfall by 43%. They also support having the SSA invest part of the Trust Fund in what I take to be an index fund, which they say would handle another 15%.
This is the plan Conscience Caucus member Rep. Ginny Brown-Waite (R) of Florida is excited about.
(ed.note: As we discussed on Saturday, while phase-out supporters will seek to confuse the issue, having the Trust Fund invest some money in private securities is entirely different from phase-out with private accounts. Whether it’s a good idea or not is a complicated question, but it is entirely different from private accounts. For more, see the post.)
