By J. Lyn Carl, GalleryWatch.com
Austin, TX –
Saying it is "the right thing to do for our country," U.S. Sen. Kay Bailey Hutchison (R-Texas) today voiced her support for President George W. Bush's efforts to reform the Social Security system.
Allowing for personal savings accounts, which the president supports, would allow the country to do something "innovative and creative," said Hutchison on the U.S. Senate floor, and something that has been tried and proven successful elsewhere.
Hutchison said young people would be allowed to set aside 2-3 percent of their 12 percent of Social Security funds in a personal account "that they can own themselves" and control through certified investments. She said those investments would be something "very conservative" and proven through all cycles of the stock market to be "a much better return than anyone can get from Social Security."
Texas' senior senator said young people "overwhelmingly" support this option because they will get bigger checks, have less government involvement and when they die will be able to pass what is left in their accounts to their children, allowing their children to start their own "nest egg."
"I think it is the right thing to do for our country, for the young people coming into our system," said Hutchison. She noted one important aspect of the proposal that often is overlooked is that personal savings accounts are an option. "If you want to stay in the system exactly as it is now, you have that option," she said, but those who want "a little more control and absolute ownership" of their funds also would have that option.
The Texas senator said Americans ages 55-60 would probably not opt into a personal savings account system, but those ages 50 and younger likely would consider it. She said that if the proposal is accepted, she expects a "huge influx" into the personal savings account option that will allow for a better financial future for Americans and an ownership that has never been allowed before.
Saying President Bush is "taking the lead" on this proposal to reform Social Security, Hutchison said Congress has a "duty" to sit down with him and at least discuss different proposals. "I will not support raising taxes and I will not support raising the limits on the salaries that are now taxed," she said, noting she did not think that is necessary. However, Hutchison said it is time to take steps toward starting "a transition process that will eventually take more of the burden off the government and make the Social Security system sound."
Hutchison said it is important that Congress recognize the leadership of the president on this issue. She said Bush is not walking away from the issue but offering an alternative. Congress thus needs to sit down and discuss the options with him. "We owe him that," she said. "He is trying to do the right thing."
The senator said it would be "irresponsible" for any member of Congress "not to come to the table" regarding Social Security reform. While there may be disagreements among both Republicans and Democrats, she said, "We all have the same goal - to save Social Security for future generations" and to do it in the most effective and efficient way possible. She said reform now would be "less painful and less expensive."