Wonkblog turned up this "believe it or not" moment in the history of crackpot "Ryan Plans":
Ryan’s Social Security privatization proposal, the Social Security Personal Savings Guarantee and Prosperity Act of 2005,
which he sponsored along with then-Sen. John Sununu (whose father has
been a prominent Romney surrogate), would have allowed workers to funnel
an average
of 6.4 percent of their 12.4 percent payroll-tax contribution to a
private account. Lower-income workers would be able to divert more of
their wages, as the plan allows 10 percent of income up to $10,000 and 5
percent of income up to the payroll tax cap to be diverted. By default,
the private account would be invested in a portfolio set by the Social
Security Administration of 65 percent stocks and 35 percent bonds.
Workers could choose an 80/20 stock-bond portfolio, or a 50-50
portfolio, but would not be able to pick individual stocks or bonds. At
retirement, all participants in the plan would be required to buy an
annuity.
|
Tell it to Paul Ryan |
The Social Security Administration concluded
that the Ryan-Sununu plan would require huge increases in general
budget revenue to make up the shortfall left in payroll tax revenue.
Specifically, revenue would have to increase by 1.5 percent of GDP every
year, an analysis by the Center for Budget and Policy Priorities found,
or about $225 billion at current GDP. That’s a big honking tax hike.
What’s more, under the plan, investments in the stock and bond markets
would skyrocket such that by 2050, every single stock or bond in the
United States would be owned by a Social Security account. This would
mean that the portfolio managers at the Social Security Administration
would more or less control the entire means of production in the United
States.
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