Second-tier Presidential candidate Thaddeus McCotter introduced legislation Monday that he says will rescue social security from insolvency by saving nearly $9 trillion over the 23 years.
“We would like to allow workers, 50 and under, to start receiving portions of their future benefits to be put into personal investments accounts,” McCotter, a Congressman from Michigan, said during an appearance at the Heritage Foundation.
In a brief overview, Former Reagan administration appointee Peter J. Ferrara, who help create the bill, said the bill would empower each worker with the freedom to choose a contribution to a personal savings and investment account equal to roughly half of the worker’s share of payroll taxes. The investment account contributions are financed by payments each year from general revenues, which in turn are financed by a reduction in government spending.
The plan would not affect those who have already retired or are nearing retirement and each worker is free to choose to stay with the current Social Security program and forego the personal plans entirely.
Rep. McCotter said the current system is unsustainable and expected to reach insolvency as early as 2029. Opposed to raising the benefit age and payroll taxes, McCotter hopes to unite the generations of those already receiving benefits and those who hope to receive them in the future saying younger people would start to see that the system works for them too.
In terms of the program, Rep. McCotter said this plan can not hurt the pocket book of Americans but rather it is meant to grow over time. “If the market completely crashed, you’re still no worse then you were in the first place,” Rep. McCotter said.