Candidates on the Issues: Social Security

The Associated Press chooses an issue three times a week and asks the presidential candidates a question about it.

SOCIAL SECURITY: Should workers be allowed to invest a portion of their payroll tax in private retirement accounts rather than have all of it go to Social Security?

Democrats:

Sen. John Edwards: "Privatizing a portion of Social Security would cost the Social Security Trust Fund more than $1 trillion, making it even harder for us to meet our responsibilities to our seniors. This kind of step would also erode the most basic guarantee of Social Security, exposing millions of Americans to an impoverished retirement. But I do support efforts to increase retirement savings outside of Social Security. I've proposed matching $1 in private savings with up to a $1 refundable tax credit, up to a limit of $1,000 per couple, for Americans with low and moderate incomes. A family that saves the maximum under this plan starting at age 25 will have a nest egg of $200,000."

Sen. John Kerry: "I do not support privatization or partial privatization of Social Security because it would cost the federal government at least $1 trillion and undoubtedly leave many workers with lower benefits. I am opposed to any plan that threatens retirement security or requires such massive sums to be borrowed in order for the government to meet its obligations.We do need to do more to help workers save for their retirement outside of Social Security and to assure these savings are protected. As president, I would fight to ensure that Social Security remains a viable program for generations to come. One of the most important steps we can take to strengthen Social Security is to grow the economy, create jobs and increase revenues into the program."

Rep. Dennis Kucinich: "Social Security is the only guaranteed income for old age and for disability. Proponents of this scheme to invest Social Security funds in the stock market assume that the stocks will earn a 7 percent annual rate of return over the next 75 years. Social Security trustees are predicting the growth of the economy will slow to something like 1.45 percent per year over that period, making it impossible to get a 7 percent rate of return on stocks. So I do not believe it is in our best interests to divert funds from the Social Security trust fund."

Al Sharpton: No response.

Republican:

President Bush: No response.