Rahm Emanuel (Rep. Ill. Dem.) Supports Supplemental Accounts Linked to Social Security

Rahm Emanuel, chairman of the House Democratic Caucus, has apparently seen the wisdom of individual retirement savings accounts which are supplemental to Social Security. I, for one, applaud his conversion to this position.

In a Commentary article in the Wall Street Journal on September, 13, 2007, Mr. Emanuel called for voluntary personal savings accounts funded by a minimum 1% of compensation from each of the employee and employer. Under the proposal, employers would be required to establish the accounts, subject to the ability of employees to opt out. At least the initial 1% would be made on a tax deductible basis. He would also allow greater voluntary contributions. He is proposing that the accounts be invested in low cost funds similar to those used by the Federal Employees Thrift Plan.

I know that these ideas were proposed by others over the past couple of years, but as Ronald Reagan used to say, I don't care who gets the credit as long as the job gets done.

Mr. Emanuel sees his proposal as a start on finding long-term solutions to Social Security's funding issues. He acknowledges that finding sustained commitment to fiscal discipline and bipartisanship may be hard to come by in a presidential election year but he says"...while Americans wait for long-term answers on Social Security, we should act now to give them more ways to start building retirement savings of their own".

I agree. This is a good start.

Save Social Security.