This is a first in a series of diaries that will examine Fred Thompson's legislative action in the US Senate.
[John McLaughlin's voice's]
Issue One: Private Accounts
Former Senator Fred(dy) Thompson advocates establishing private accounts to fund future Social Security liabilities. In 1998, Freddy cosponsored the 21st Century Retirement Act introduced by Senator Gregg.
(More on the flip)
The bill would have:
- Established "independent security accounts" (ISA) that would be funded through a reduction of FICA taxes;
- Eliminated the earnings test that reduces Social Security benefits for the wealthiest Americans; and,
- Used a modified CPI to decrease cost-of-living adjustments.
But we already know what Americans think about carved out, privatized Social Security. As many as 70% of Americans believe that private accounts is a bad idea.
And we also know how devastating this public policy is for America. In 2002, AARP analyzed the effectiveness of passing similar legislation. What they found was a 10-point manifesto on why we should not establish these carve out accounts.
Question: Does Freddy still support privatizing Social Security? And if so, will he reignite President Bush's already rejected version of the policy? I ask you!