Log Cabin Republicans Endorse Paul Ryan-John Sununu Plan to Save Social Security
Bill Provides Basic Fairness for All Families
(Washington, DC) – Log Cabin Republicans support the Social Security reform plan introduced by Representative Paul Ryan (R-WI) and Senator John Sununu (R-NH). "The Ryan-Sununu plan to save Social Security provides a measure of basic fairness to all families, especially gay and lesbian families, by giving them back control over their future," said Log Cabin Republicans President Patrick Guerriero. "The Ryan-Sununu plan recognizes that personal savings accounts are a critical component of real Social Security reform. Log Cabin proudly supports this legislation."
In January, Log Cabin introduced its legislative agenda for the 109th Congress. The centerpiece of Log Cabin's reform agenda was comprehensive Social Security reform. In particular, Log Cabin identified personal savings accounts as central to any reform proposal. Personal savings accounts would allow gay and lesbian couples to have a portion of their hard earned tax dollars passed on to their surviving partner. They are prevented from doing this under the current Social Security system.
The Ryan-Sununu legislation allows workers to devote to tax-free personal accounts 10 percentage points of the current 12.4% Social Security payroll tax on the first $10,000 of wages each year. On taxable wages above that, they can shift 5 percentage points of the 12.4% tax to their accounts. On average, workers would be dedicating 6.4 percentage points of the Social Security payroll tax to their accounts. This progressive account structure allows lower income workers to keep more of their FICA taxes in their personal account than higher income workers.
Those choosing to participate in personal accounts would have a selection of investment options that are regulated for safety and soundness – similar to the way the Thrift Savings Plan for federal employees works today. The federal government would back the personal accounts with a guarantee that workers receive at least as much as Social Security promises under current law, providing an added level of security for workers' retirement savings.
The Chief Actuary of Social Security has already scored this legislation as achieving permanent solvency for the program, without benefit reductions or tax increases.
Log Cabin is launching an aggressive lobbying and grassroots effort to urge support for this proposal. "We applaud Senator John Sununu and Congressman Paul Ryan for introducing this bold plan for real Social Security reform. Members of the House and Senate should provide basic fairness for all families by supporting the Ryan-Sununu plan," said Log Cabin Political Director Chris Barron.