Political Quotes

“I am sure that the distinguished Senator from Colorado has other appointments he has to meet and will have to leave the floor shortly. But could I congratulate him on his remarks, and to say that we are about to introduce a bill, the Social Security Solvency Act of 1998, that is almost precisely the one he contemplates, or is in that range of reference. For his particular concern, we reduce the present 12.4 percent payroll tax by 2 percentage points, to 10.4. That puts us on a pay-as-you-go system, which with other adjustments, particularly the cost-of-living adjustment, means we will never go much above 13.4 percent, and we stay at 12.4 all the way to the year 2045. And then we give to each worker-employee the option of having 2 percent, the reduction in tax under our bill, put into a personal savings account-- not very different from the Federal Thrift Savings Plan in which you have a whole catalog of mutual funds of various kinds in which you can invest. The magic of compound interest is extraordinary. The Wall Street Journal this morning comments on this proposal and notes that--well, I will just read it: Why shouldn't working stiffs have the same chance others have to exploit the magic of compound interest? Mr. Moynihan shows that workers earning $30,000 a year-- Which is not a high income at this time-- can at a modest 5 percent return amass $450,000 in savings after 45 years. By just shifting that 2 percent.”