The worker would invest the personal account funds by choosing from a range of privately managed investment funds, just as with the Federal Thrift Savings Plan for federal employees, or the Social Security personal account system adopted 30 years ago in Chile that has operated with such great success for the workers of that nation.
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Some highlights of the Roadmap: Replace Medicare with a voucher-based system, get rid of the corporate income tax and replace it with a consumption tax, offer a simplified income tax system and personal investment accounts as an alternative to the current Social Security system.
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But while we have time, we should rapidly phase in a new system for younger workers-Social Security Personal Retirement Accounts (PRAs), similar to IRAs or 401(k)s.
Just as in Chile, for 30 years now they have paid much less into their personal account savings and investment system than required by Social Security, but receive much more in benefits.
Properly structured personal accounts would actually give them more for retirement than the existing Social Security system possibly could.
In 1981, the South American nation of Chile, then with a Social Security system just like ours, with the same problems, adopted a personal account option similar to Ryan-Sununu, with astounding success.
And in this case, delivering an individual worker credit through the payroll tax system muddies the waters between personal income taxes and taxes paid to support Social Security.
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His nearly 100 patented creations include a dictionary, a train-switching system and, most recently, a service that turns an ordinary pager into a personal security device.
Since the system is designed to determine the legal status of workers based on names, Social Security numbers and potentially personal biometric identifiers of every working age adult in America, worries about the system becoming a tool for ever-expanding federal purposes are legitimate.
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