The Bulletin's Frontrunner

December 14, 2001

SECTION: Washington News

Shaw, DeMint Outline Social Security Reform Plans.

The AP (12/13, Abrams) reported House Republicans "outlined two different plans Thursday to ensure the survival of Social Security over the next 75 years. Both allow younger workers to invest some wages in personal retirement accounts." The bills "came two days after President Bush's Social Security commission offered three proposals for private accounts among its recommendations for the future of the retiree benefit program." The commission "suggested Congress take at least a year to discuss the options before taking action to revamp the 66-year-old system." Sponsors E. Clay Shaw (R-FL), chairman of the Ways and Means Social Security panel, and Rep. Jim DeMint (R-SC), said it "was not too early to get the legislative process started." Shaw said the "difficulty of moving Social Security legislation in an election year did not deter him." Shaw said, "If I see the opportunity to move a bill forward, I will." The AP added DeMint said, "It's going to be an election issue whether we like it or not." The AP added Shaw's "measure would create a voluntary program under which workers could receive a refundable tax credit of 2 percent to 3 percent of their earnings that would go into a personal retirement account." Employees could "pick from a range of investment houses that would put 60 percent of the investment in stocks and 40 percent in corporate bonds." The Orlando Sentinel (12/14, Gibson) reports, "Shaw's proposal follows a presidential commission's recommendation that outlined options for keeping the system solvent, mostly by trimming future benefits or raising the retirement age." The Sentinel continues, "Social Security reform, along with other domestic issues, has been shoved to the background by the war on terrorism and economic problems, but Shaw hopes public pressure will prompt action."

More Commentary.

The Boulder Daily Camera (12/14) writes in an editorial, "As confusing and often shamelessly deceptive as the debate over Social Security has been in recent years, it's hard to blame the millions who plug their ears when it comes up." The Daily Camera continues, "Yet with the release this week of the final draft report from President Bush's bipartisan, 16- member Commission to Strengthen Social Security, we anticipated the subject would strongly register on the media's and public's radar. It didn't. Major publications didn't even put the story on their front pages. Guess Social Security just doesn't offer the same thrills as terrorist- tagging in Tora Bora." The Daily Camera adds, "The Bush administration is to be congratulated for recognizing there is a problem. That said, it's too bad the president took two key options -- raising FICA taxes and eligibility age -- off the table." The Daily Camera notes, "Of course, howls of protest have gone up. Some Democrats have shrieked about 'cutting benefits for seniors'; some conservatives grumble about 'wealth redistribution.'" The Daily Camera concludes, " But instead of trashing this excellent, bipartisan effort for short-term partisan gain, critics ought to -- at least -- welcome it as a valuable addition to a necessary debate."