What do you think Obama meant by this? Just curious...

[BigBearJohn]

"Now, to preserve our long-term fiscal health, we must also address the growing costs in Medicare and Social Security. Comprehensive health care reform is the best way to strengthen Medicare for years to come. And we must also begin a conversation on how to do the same for Social Security, while creating tax-free universal savings accounts for all Americans."

What is your understanding of how a tax-free universal savings account fit with Social Security?

[No.23]

1. Privatization.

Social Security = government managed/run

universal savings accounts = privately managed/run

Best as I can figure, at this point of the game.

[bottomtheweaver]

2. "In fact, USAs [universal savings accounts] will encourage

workers to save through 401(k)-type plans by giving the millions of
workers who are currently eligible to contribute, but who fail to do so,
a greater incentive to contribute without imposing administrative
burdens on employers or plan administrators."

Hey, great idea, "financial services industry"! Let's make sure EVERYBODY gets wiped out in the next "downturn"!

http://www.network-democracy.org/social-security/bb/proposals/usa_accounts.html

[leftstreet]

3. translated: "All ur monies R belong to Us!"

Privatization.

A choice-based retirement system:

1) If you can afford a private account, you'll do great.
2) If you can't, game over.

Oh and the private account is also Faith-based, cuz it'll be tied to the Stock Market.

[busybl]

4. ah and managed by the very people

that brought us ruin. I wouldn't trust them to hold onto my lunch money.

[FrenchieCat]

5. He's talking about several things....

Reforming Medicare Part D http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x8206100

Increasing the cap on Social Security...so that those earning more than the current $103,000 cap will continue to pay into the system,

And Tax Free Savings account is in addition to SS.....$2000 tax credit for Working Families Savings Accounts - Obama today proposed Working Families Savings Accounts to increase retirement security and give families a greater incentive to save. “The best way for our government to help ensure that every American can retire with dignity is to provide incentives for middle-class families to save for the future,” said Obama. “My Working Families Savings Accounts plan gives working men and women earning up to $50,000 per year the opportunity to put money in a retirement plan, whether it’s an IRA or an employer based 401(k), and have that money matched with a 50 percent tax credit for contributions up to $2,000.“
Today, only about half of workers participate in an employer-based pension plan. Participation rates in other savings plans are substantially lower. Only about five percent of people contribute the maximum amount allowed each year to an IRA or 401(k).



Here, read this for a better understand where Pres. Obama stands on Social Security and what Tax Free Savings accounts are about: http://www.ontheissues.org/2008/barack_obama_social_security.htm

[EraOfResponsibility]

11. Very informative, thanks Frenchie n/m

[FrenchieCat]

18. Welcome!

:hi:

I also put up this thread with more of the info there.... http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=5138250&mesg_id=5138250

[napi21]

6. I don't have a problem with USA's. It would be a tax free way to pay your copays.

I didn't get the impression he was relating SS to privatization. I think when he talked about strengthening medicare and comprehensive health care, he was talking about giving everyone the opportunity to buy into medicare, thus broadening the base of medicare with younger and more likely healthier people.

He said we need to address the problems with SS, and if I had to guess, I'd say after all the fighting and arguing is done, the ultimate decision will be what it always has been...raise the cap. I think if at the same time the cap is raised, the cap was linked to the rate of inflation, or wage index, they would never have to mess with it again!

[Suich]

10. Agreed! n/t

[Wetzelbill]

7. It could also be something along the lines of KidSave

Which was sort of like an idea Hillary talked about last year on the campaign trail. It's actually a compelling idea, if it was done right anyway. I became interested in it as a possible policy for American Indians so that they could immediately have something saved in an account for them at birth. My plan would be slightly different than the other proposals I've heard, but same generic concept.

David Brooks wrote about it a few years ago:

Mr. President, Let's Share the Wealth
http://www.nytimes.com/2005/02/08/opinion/08brooks.html?_r=1&oref=slogin

[Enrique]

12. lol, I read KidSlave

that would be innovative... ;-)

[Wetzelbill]

13. yes that is a quality program

:)

[No.23]

8. BTW, they did it under the Clinton administration.

Just ask any federal employee about CSRS and FERS.

CSRS is the old civil service retirement system, and FERS is the current 401K-based retirement system.

The Clinton administration effectively changed the civil service retirement system into a 401K-based one.

I'm thinking that they may want to do to SS what they did to federal retirement.

[sandnsea]

9. Baby bonds?

They've been floating that idea for a while, Edwards talked about it back in 2003. If he thinks people are going to accept an alternative to social security, he'll need to be thinking again.

[Wetzelbill]

14. probably more like something to augment it

rather than an alternative, the dude isn't insane, you know? It could be just a throwaway line too but he's so smooth I doubt that, he probably has something interesting up his sleeve.

[sandnsea]

15. FrenchieCat has a thread

He proposed a 50% match, up to $2,000 a year, during the campaign. I guess I missed it. That must be what he's talking about here, in addition to the social security reforms that do not mean cutting people's benefits.

[Wetzelbill]

16. yeah that sounds about right

I think I heard him mention that or I read something like that before. Hell it's late, I can barely thing, lol.

[BigBearJohn]

17. Thanks for everyone's input. I really appreciate it.

[ConsAreLiars]

19. Not privatization of SS, but the opposite.

Giving people the option to put their additional retirement savings into a gov't guaranteed plan, rather than one that can be used by the Corps for their own financial interests and then made to vanish completely or almost completely with a few legal maneuvers, as has often happened with many corporate pension plans. Enron, GM, and many others.

[BigBearJohn]

20. I pray your interpration comes true.