Think Tanks Offer Latest Social Security 'Reform' Plan (CongressNow, subscription only)

A new plan to reform Social Security released today would transform it into a true retirement insurance program to protect people against costs that exceed their means, according to a report released today.

The proposal, presented jointly by The Heritage Foundation the New America Foundation, would mandate retirement savings and insurance,while scaling back benefits for those who don't need them.

The proposal also would require a long-term budget plan for entitlements instead of automatic increases in spending.

"The motivation for this paper was looking at the fiscal path confronting is unsustainable," said Maya MacGuineas, one of the paper's authors and president of the Committee for a Responsible Federal Budget. "There's no way to sugarcoat this. It's not easy and it's not pain free."

MacGuineas noted that the budget doesn't have the flexibility it needs to meet demands as they come along. ...

"We need to invest in the next generation," MacGuineas said. "But we don't have the resources." ...

"Regardless of how high we raise taxes, even if we let President Bush's tax cuts expire we won't close the fiscal gap," MacGuineas said. more