Tanner at Cato suggests private accounts. Fortunately the Democrats would NEVER allow that, since voters are stupid and really can’t be trusted with their own money.
[quote]Of course we could always raise taxes or cut benefits enough to bring the system into balance. But we would have to raise payroll taxes by roughly 50 percent. Some have suggested removing the cap on income subject to the payroll tax. But while that would be the largest tax increase in U.S. history, $1.3 trillion over the first 10 years, it would increase Social Security’s cash-flow solvency by only seven years.
Worse, tax increases or benefit cuts would do nothing to address Social Security’s other problems. It would not enable workers to decide how their money is invested. It would not allow low- and middle-income workers to accumulate a nest egg of real, inheritable wealth. It would not improve Social Security’s rate of return for younger workers.
A much better approach would be to take advantage of the higher rate of return from private investment by allowing younger workers the option of saving some of their Social Security taxes through personal accounts.
But no matter what, Social Security reform is not an option, but a necessity. All candidates owe it to us to tell us where they stand.