Feingold Ad on Social Security Distorts the Truth

Senator Feingold is employing tired and empty rhetoric on Social Security reform in his latest television spot. Using a worn-out page from the liberal playbook, Feingold’s advertisement entitled “Gambling” falsely equates Personal Retirement Accounts (PRAs) with “privatizing Social Security” and asserts that PRAs would put the program “at risk.”

The truth is that this is just another scare tactic from a candidate who has no solution of his own. Feingold has no plan for 2018, when the Social Security program will begin to pay more in benefits than it collects in payroll taxes. Because Social Security faces a staggering $12 trillion unfunded liability and the “Trust Fund” contains no real assets, Congress will have to raise payroll taxes and cut benefits in order to keep the program solvent.

Personal Retirement Accounts are the best solution to this crisis. PRAs, if passed by Congress soon, will help the country avoid tax hikes and benefit cuts because they allow workers to begin saving real assets in individual accounts that they own and control. And far from putting benefits “at risk,” PRAs will provide workers with better returns— one proposal would offer benefits 130 percent of current government promises.

Importantly, Personal Retirement Accounts do not “privatize” the Social Security program. Contributions in the form of payroll taxes will still be mandatory. While PRAs will be owned and controlled by individual workers, the government will still manage the overall program to prevent fraud and ensure security. In fact, a similar model already exists in the form of the successful Thrift Savings Plans that federal workers now enjoy. And, of course, current retirees, those near retirement, and those receiving disability payments will still receive benefits as promised. PRAs are not privatization but rather mirror mainstream 401(k)s and IRAs; they are a proven reform that will save the Social Security system for future generations.

Wisconsin FreedomWorks Director Cameron Sholty commented:

“It’s interesting that many who adamantly oppose Personal Retirement Accounts already have their personal pensions in the stock market. Senators and other federal workers can invest in private markets as part of a government retirement program. So why doesn’t Senator Feingold also support creating retirement savings options for ordinary people similar to those that politicians like him already enjoy?”

“Feingold is wrong on the issue of Social Security reform. Instead of launching a misleading smear campaign against PRAs, he should offer his own solution. Senator Feingold, what is your plan to save Social Security?”