FreedomWorks

The Issue

America is on the brink of a national fiscal and retirement security crisis. Social Security has a massive unfunded liability of $12 trillion, and in 2017 the program runs into the red as benefits paid exceed contributions. What’s more, the Social Security Trust Fund is full of meaningless government IOUs—there are no real assets in the “Trust Fund”. If nothing is done, in just a few years Americans will face massive tax hikes and benefit cuts.

The FreedomWorks Position

Social Security has become a bad deal for younger Americans. Today, most young workers are likely to get less back in retirement benefits than they paid into the system. We believe workers should be allowed to divert a portion of their payroll taxes into Personal Retirement Accounts that they - not bureaucrats and politicians - own and control. This plan would allow workers to divert a portion of their Social Security payroll taxes into a “nest egg” that they own, control, and can even pass onto their children. PRAs would grow with the economy and provide seniors with secure retirement income. If we don't act now, the costs of fixing Social Security will only continue to grow.