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Day analysis of private Social Security flawed

Allen R. Kraska Old Lyme

Publication: The Day

Published 10/06/2012 12:00 AM
Updated 10/05/2012 05:25 PM

The Day editorial, "Social Security, important issue ignored," (Aug. 21), went down a familiar road with its criticism of private accounts. The "experience of the 2008 crash" is always trotted out as the crippling blow to the proposal.

What is left out of the discussion is the fact that if one stayed the course for these past five years, his or her portfolio of equities would have recovered, or even be ahead.

These accounts, if properly instituted over a person's working life, would be held for about 40 years.

There has never been a 40-year stretch where equities have not done better than the Social Security Trust Fund. The knee-jerk response that the editorial fell right into is to increase taxes on those making more than $110,100, which always appears safe.

We can skim a little off the "millionaires and billionaires." There are consequences to that approach. They are evident in Connecticut. A recent Wall Street Journal article pointed out that over $20 billion of taxable income has left the state in the last 10 years.

That's a very significant tax base to leave this beautiful state. One of these days the politicians in this state are going to wake up and realize that Atlas has shrugged.

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