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Social Security Reform on Hold
El Diario
October 26, 2005
President Bush has set aside his efforts to reform Social Security, for now. It seems the president and the nation have more pressing domestic issues to deal with right now, such as the recovery from Hurricane Katrina and other storms, the nomination of a Supreme Court justice, and the investigation of top White House officials to find out who leaked the identity of a CIA agent.
Social Security reform is an important issue for Latinos because Social Security is the major source of income for so many of our senior citizens. Three quarters of Latinos over age 65 rely on Social Security for half or more of their total income. Without this guaranteed benefit, more than half of Latino seniors would live under the poverty level.
The sticking point for us and for many Americans is President Bush's plan to allow workers to deposit part of their Social Security taxes into private accounts that would be invested in the stock market. Setting up the accounts would add trillions to the national debt. The benefits from the accounts would depend on when you happen to retire, since the stock market fluctuates from year to year. And it could include a tax on benefits.
The idea of the private accounts should be not be ruled out completely, and Latinos in particular could benefit from diversifying their options for retirement savings.
But the Bush plan must address our concerns. And it should consider other solutions, such as raising or removing the $90,000 cap on earnings that are taxable. People who earn more than $90,000 should continue to pay into the system at the same rate as others. The additional income would help to keep Social Security solvent far into the future.
Social Security was created to keep America's elderly people from slipping into poverty. We must make sure today's young workers have the same protection in the future.
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