The Case for (Carve-Out) Personal Accounts

From Jagadeesh Gokhale, a senior fellow at the Cato Institute:

Republican leaders in Congress have been struggling to come up with Social Security legislation that will attract the broadest possible support. That's apparently proving difficult because of lawmakers' wide range of preferences on retirement policy, private pensions, tax-favored saving plans, taxes and so on. The latest buzz is about restricting personal accounts to just save Social Security's surplus payroll taxes -- by crediting only that amount each year to personal accounts. After the dust settles, we may get a bill that's extremely complicated and broad, but with very small accounts.