FreedomWorks cheers Senator Chuck Hagel (R-NE) for his bold leadership on Social Security reform. Sen. Hagel is introducing legislation today that will reform Social Security by allowing workers to invest a substantial portion of their income into Personal Retirement Accounts (PRAs).

Sen. Hagel's bill, "The Saving Social Security Act of 2005", would let Americans under age 45 put 4 percentage points of their Social Security payroll taxes into a personal account that they own, control, and can pass onto their children. Additionally, Sen. Hagel's proposal does not increase taxes or raise the payroll tax cap.

FreedomWorks Chairman Dick Armey made the following comments:

"FreedomWorks applauds Senator Hagel for his leadership. Today he is making a substantial contribution to the debate by proposing a real solution to the quickly approaching Social Security crisis. While some legislators are resorting to misleading rhetoric on this important issue, Sen. Hagel presents a plan that would deal with Social Security's massive unfunded liability and would ensure that the program is there to provide for generations to come."

"Indeed, Personal Retirement Accounts are the best way to avert the Social Security crisis and address the program's unfunded liability. Personal accounts will grow with the American economy and provide workers with more benefits than the current system. Moreover, Sen. Hagel's bill includes larger personal accounts than many other plans. We'd like to see the biggest accounts possible, and we're glad that Nebraska's senior senator is moving the debate in the right direction."

"FreedomWorks also cheers Senator Hagel for offering a solution that doesn't include a tax hike. The current payroll tax already kills jobs and opportunity, and a tax increase would only add to the drag on the economy. FreedomWorks will be sure to educate citizens about the benefits of Sen. Hagel's bill and other legislation that reforms Social Security through PRAs."