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That is where the sweetener comes in. Rather than private accounts financed by diverting payroll taxes from the existing program, Mr. Thompson would offer add-on private accounts. Unless workers opted out, 2 percent of the wages they earn that are subject to Social Security tax (up to $97,500 this year) would be deposited into private accounts.

Would that 2 percent come out of the 12.4 percent already paid by individuals (6.2 percent each from employer and employee)...or would it be in addition to the regular Social Security taxes already withheld each pay period?

And, Social Security is only one head of a snake with many more: federal government spending run amok. I have not had much time lately to read on Fred's Web site, so if another FReeper would care to enlighten me as to how Fred proposes to deal with excessive federal government spending (in general), I would be most grateful.

Uhhhh ... why not just go back to that idealistic concept of a trust fund ?

As I understand it, there USED TO BE a trust fund, until Johnson closed the account and moved all funds into the general budget. From there it was an Amway type of of payout to all those that were 'brought into' the program. The problem was, and is ... there is no volunteering but a forced participation.

Let forced participation of SS funds go into a real, live account that accually generates some kind of interest ... then, at some point in a contributor's life ... 35, 40 years of age maybe ... give him or her the option to opt out, take a very reduced, but guaranteed monthly check (15% ?) and allow him or her to then make their own decisions about their retirement.

This would provide SS funds for SS purposes and also allow those that have 'made it' in life to invest on their own, their own money.

Once you opt out .. you can't go back in ... but you still have that 15% check for life.