President Bush's plan to privatize social security has faced challenges at every turn. Proposed legistlation meets the needs of all the concerns of the Americans people (including liberals and socialists).

National Social Security was originally created in 1935 as a part of President Roosevelt’s New Deal. The act established two social insurance programs: unemployment compensation and elderly retirement insurance. According to the act, the government program was designed to provide for the economic security and welfare of individuals and their dependents.

Social Security began as a fully funded system and has evolved into the "Pay as You Go System." In other word’s, today’s workforce pays for the retirees. This system is functional until we have a bubble of retirees such as the retirement of the baby boomers. Between 2000 and 2025, the number of people age 65 and older, are projected to grow by 76%. In contrast, the number of workers supporting the system is projected to grow by 17%. Every year we wait to reform will cost an estimated 600 billion dollars. Social Security will be able to meet its obligation until 2042 when the reserve trust funds will be depleted. Without any other form of governmental receipts, policy makers would have three options: raise taxes, reduce spending, or borrow money.

According to Alan Greenspan, "I think we should maintain the principles of Social Security, but I think the existing structure is not working; and that until we can construct a system which creates the savings that are required to build the real assets so that the retirees have real goods and services, we don't have a system that's working."

Currently, the only major bi-partisan reform plan, HR 440 and HR 530, was introduced by Congressman Kolbe and Boyd to provide personal account options to all workers. With this reform, workers will have the choice of continuing in the present system or may choose to invest by shifting 3-10% of their first $10,000 income and 2-5% above that of their 12.4% payroll tax. The reform will rely on the choice of major mutual funds and bonds approved by the social security policymakers. Furthermore, workers would receive their Social Securities benefits based on the payroll taxes that they have already paid. Reform plans guarantee a safety net, providing retirees no less than what Social Security promises today. Under this reform plan The Chief Actuary of Social Security has officially scored the reform plan as achieving full solvency for Social Security by 2029, with permanent and growing surpluses thereafter.

To finance the reform, the short-term Social Security surpluses, now projected to last until 2018, are devoted to the transition. Financing would also come from the increase in federal tax revenues resulting from increased corporate and business investment due to the accounts. This is the largest tax cut in history and would effectually eliminate the largest government debt in history. To secure funding, the reform’s transition financing will be placed in its own separate Social Security Lockbox budget. Instead of the Social Security payroll tax eventually climbing to over 20% to pay all currently promised benefits, the Chief Actuary’s score shows that the reform plan reduces the current 12.4% payroll tax to 3.5% eventually, with 6.4% on average going into the personal accounts.

Social Security reform will give all Americans the same options and opportunities investors have had for a prosperous retirement: personal wealth accumulation, freedom of choice, an inheritance to pass on to loved ones, and personal control while maintaining current benefits for all of today’s seniors.