Proposals abound for fixing our Social Security system. Some want to leave it just the way it is, another group wants to require investment in private retirement and still others desire only to provide the option to invest in a private account. There are six bills in between the House and Senate (4 House, 2 Senate)that have not gotten a committee hearing yet. There is also a resolution in committee in the Senate to disallow consideration on any bill that includes Private Retirement Accounts as even an option for reform.
A thorough review of the proposals led me to conclude that the most insightful, innovative, best layed out reform plan was that proposed on 18 November 2003 by Senator Lindsey O. Graham (R-SC). Graham’s bill (S. 1878) would allow for younger workers to take the option divert 4% points of their OASDI (old age, survivors and disability insurance) taxes into a Private Retirement Account (PRA) that would be much like the Thrift Savings Plan, in which all federal employees have the option to participate. There is a cap of $1300 on diverted funds. The remainder of the taxes would stay in the current system. For those who opt out of option 1 the remaining two options offer individuals the security of the traditional system with major differences. The second, like the first changes the benefits determination formula so that benefits are more in line with the CPI and wage growth, with PIA up to 120% of the poverty level and Incresing benefits of widows and widowers to about 75 % of what would be recived if both spouses were alive. The third option is the traditional system.
Wednesday, November 24, 2004
Sunday, November 14, 2004
Six Principles for Evaluating Legislation
1. Less Government–Does the bill tend to reduce government regulations, size of government, or eliminate?
2. Lower Taxes–Does the bill promote individuals responsibility in spending, or reduce taxes or fees?
3. Personal Responsibility–Does the bill encourage responsible behavior by individuals and families and encourage them to provide for their own health, safety, education, moral fortitude, or general welfare?
4. Individual Freedom–Does the bill increase opportunities to for individuals or families to decide, without hindrance or coercion from government how to conduct their own lives and make personal choices?
5. Stronger Families–Does the bill enhance the traditional American family and its power to rear children without excessive interference from the government?
6. Domestic Tranquility– National Defense–Does the bill enhance American security without unduly burdening civil liberty?
2. Lower Taxes–Does the bill promote individuals responsibility in spending, or reduce taxes or fees?
3. Personal Responsibility–Does the bill encourage responsible behavior by individuals and families and encourage them to provide for their own health, safety, education, moral fortitude, or general welfare?
4. Individual Freedom–Does the bill increase opportunities to for individuals or families to decide, without hindrance or coercion from government how to conduct their own lives and make personal choices?
5. Stronger Families–Does the bill enhance the traditional American family and its power to rear children without excessive interference from the government?
6. Domestic Tranquility– National Defense–Does the bill enhance American security without unduly burdening civil liberty?
Principles of a Free Society
Limited Government
The rightful functions of government are to guarantee individual liberty, private property, internal order, the provision of national defense, and the administration of justice. When the state exceeds this proper role, it accumulates power and becomes a threat to personal liberty.
Individual Liberty
Individuals possess rights to life, liberty, property, and freedom from the restrictions of arbitrary force. They exercise these rights through the use of their natural free will.
Personal Responsibility
Personal responsibility is central to the idea of a free society and to the concept of self-government. Because each individual is morally responsible for his acts, citizens in a free society have an obligation to educate themselves to further the common good through the political process: this is the proper and necessary function of self-government.
The Rule of Law
Laws, not men, rule a free society. The Constitution of the United States, with its division of powers, is the best arrangement yet devised for empowering government while preventing the concentration of power.
Free Market Economy
Allocating resources by the free play of supply and demand is the single economic system compatible with the requirements of a free society, and also the most productive and efficient supplier of human needs.
Moral Norms
The values, customs, conventions, and norms of the Judeo-Christian tradition inform and guide a free society. Without such ordinances, society induces its decay by embracing a relativism that rejects an objective moral order.
The rightful functions of government are to guarantee individual liberty, private property, internal order, the provision of national defense, and the administration of justice. When the state exceeds this proper role, it accumulates power and becomes a threat to personal liberty.
Individual Liberty
Individuals possess rights to life, liberty, property, and freedom from the restrictions of arbitrary force. They exercise these rights through the use of their natural free will.
Personal Responsibility
Personal responsibility is central to the idea of a free society and to the concept of self-government. Because each individual is morally responsible for his acts, citizens in a free society have an obligation to educate themselves to further the common good through the political process: this is the proper and necessary function of self-government.
The Rule of Law
Laws, not men, rule a free society. The Constitution of the United States, with its division of powers, is the best arrangement yet devised for empowering government while preventing the concentration of power.
Free Market Economy
Allocating resources by the free play of supply and demand is the single economic system compatible with the requirements of a free society, and also the most productive and efficient supplier of human needs.
Moral Norms
The values, customs, conventions, and norms of the Judeo-Christian tradition inform and guide a free society. Without such ordinances, society induces its decay by embracing a relativism that rejects an objective moral order.
Thursday, November 4, 2004
President Bush's Social Security Reform Plan may be based on Sen. Graham's Proposal
Sen. Lindsey Graham (R-SC) has a proposal to modernize Social Security and make it solvent in to the future and it may be the basis of President Bush's policy. The proposal, called the Social Security Solvency and Modernization Act, was originally introduced late in 2003. It languished in the Senate Finance Committee because of more pressing concerns, like National and Homeland Security. However, it will be reintroduced sometime early next year after the swearing in of the 109th Congress.
The proposal grants younger workers the option of investing 4% (up to $1300) of their SS payroll taxes into a private account in the Thrift Savings Plan, a government guaranteed program. This option also allows younger people to have increased survivors benefits if something should happen to their parents and the earnings or losses from the private account will be offset by the benefits received form th 96% of the taxes not invested in the account.
The proposal grants younger workers the option of investing 4% (up to $1300) of their SS payroll taxes into a private account in the Thrift Savings Plan, a government guaranteed program. This option also allows younger people to have increased survivors benefits if something should happen to their parents and the earnings or losses from the private account will be offset by the benefits received form th 96% of the taxes not invested in the account.
Monday, November 1, 2004
A Call to Faithful Citizenship
One of our greatest blessings in the United States
The Constitution protects the right of individuals and of religious bodies to speak out without governmental interference, favoritism, or discrimination. Major public issues have moral dimensions. Religious values have significant public consequences. Our nation is enriched and our tradition of pluralism is enhanced, not threatened, when religious groups contribute their values to public debates.
As bishops, we have a responsibility as Americans and as religious teachers to speak out on the moral dimensions of public life. The Catholic community enters public life not to impose sectarian doctrine but to act on our moral convictions, to share our experience in serving the poor and vulnerable, and to participate in the dialogue over our nation's future.
A Catholic moral framework does not easily fit the ideologies of "right" or "left," nor tthe platforms of any party. Our values are often not "politically correct." Believers are called to be a community of conscience within the larger society and to test public life by the values of Scripture and the principles of Catholic social teaching. Our responsibility is to measure all candidates, policies, parties, and platforms by how they protect or undermine the life, dignity, and rights of the human person?whether they protect the poor and vulnerable and advance the common good.
Jesus called us to "love one another".3 Our Lord's example and words demand care for the "least of these"4 from each of us. Yet they also require action on a broader scale. Faithful citizenship is about more than elections. It requires ongoing participation in the continuing political and legislative process.
A recentVatican statement on Catholic participation in political life highlights the need for involvement:
Today's democratic societies . . . call for new and fuller forms of participation in public life by Christian and non-Christian citizens alike. Indeed, all can contribute, by voting in elections for lawmakers and government officials, and in other ways as well, to the development of political solutions and legislative choices which, in their opinion, will benefit the common good.5 In the Catholic tradition, responsible citizenship is a virtue; participation in the political process is a moral obligation. All believers are called to faithful citizenship, to become informed, active, and responsible participants in the political process. As we have said, "We encourage all citizens, particularly Catholics, to embrace their citizenship not merely as a duty and privilege, but as an opportunity meaningfully to participate [more fully] in building the culture of life. Every voice matters in the public forum. Every vote counts. Every act of responsible citizenship is an exercise of significant individual power."6 Even those who are not citizens are called to participate in the debates which shape our common life.
The Constitution protects the right of individuals and of religious bodies to speak out without governmental interference, favoritism, or discrimination. Major public issues have moral dimensions. Religious values have significant public consequences. Our nation is enriched and our tradition of pluralism is enhanced, not threatened, when religious groups contribute their values to public debates.
As bishops, we have a responsibility as Americans and as religious teachers to speak out on the moral dimensions of public life. The Catholic community enters public life not to impose sectarian doctrine but to act on our moral convictions, to share our experience in serving the poor and vulnerable, and to participate in the dialogue over our nation's future.
A Catholic moral framework does not easily fit the ideologies of "right" or "left," nor tthe platforms of any party. Our values are often not "politically correct." Believers are called to be a community of conscience within the larger society and to test public life by the values of Scripture and the principles of Catholic social teaching. Our responsibility is to measure all candidates, policies, parties, and platforms by how they protect or undermine the life, dignity, and rights of the human person?whether they protect the poor and vulnerable and advance the common good.
Jesus called us to "love one another".3 Our Lord's example and words demand care for the "least of these"4 from each of us. Yet they also require action on a broader scale. Faithful citizenship is about more than elections. It requires ongoing participation in the continuing political and legislative process.
A recent
Today's democratic societies . . . call for new and fuller forms of participation in public life by Christian and non-Christian citizens alike. Indeed, all can contribute, by voting in elections for lawmakers and government officials, and in other ways as well, to the development of political solutions and legislative choices which, in their opinion, will benefit the common good.5 In the Catholic tradition, responsible citizenship is a virtue; participation in the political process is a moral obligation. All believers are called to faithful citizenship, to become informed, active, and responsible participants in the political process. As we have said, "We encourage all citizens, particularly Catholics, to embrace their citizenship not merely as a duty and privilege, but as an opportunity meaningfully to participate [more fully] in building the culture of life. Every voice matters in the public forum. Every vote counts. Every act of responsible citizenship is an exercise of significant individual power."6 Even those who are not citizens are called to participate in the debates which shape our common life.
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