Cheney wants cheaper Security for young Americans

$7,100.

Vice President Dick Cheney says $7,100 is the amount of money Americans now in their… $7,100.

Vice President Dick Cheney says $7,100 is the amount of money Americans now in their 20s and 30s can expect to pay each year in Social Security taxes one day.

In a town meeting discussion held at LaRoche College yesterday afternoon, Cheney explained the Bush administration’s plans to avoid such an immense cost increase. Currently, taxpayers contribute approximately $4,700 each year to Social Security — nearly six times the amount they paid when the program began in 1935.

“These numbers don’t work in the future,” the vice president said. “We want to address this now while we have time.”

Cheney said he is concerned for people in their 20s and 30s, who may not have a strong Social Security program when they retire.

“If we do nothing at all, we’re gong to get out there and drop off the cliff,” he added.

The hour-long discussion, which included remarks from Rep. Melissa Hart, R-Bradford Woods, gave the vice president the opportunity to share the details of the program he and President George W. Bush advocate to solve the Social Security problem before it reaches unrealistic limits.

The plan would allow Americans to contribute 4 percent of their yearly incomes to personal retirement accounts, similar to 401K plans. The personal account money would supplement the 6.2 percent Americans already pay in Social Security tax, which employers match in payment.

He added that this plan could give Americans an asset in their names that would be there after they reach retirement age, in addition to their Social Security checks.

One advantage Hart mentioned about the plan is that if someone who had been contributing to his personal retirement account died before he began collecting, his next-of-kin would be able to collect the money from the account.

“The benefit is that this money will always have your name on it,” Hart added.

After speaking without the aid of teleprompters or notes for almost 30 minutes, Cheney opened the floor to questions from people in the packed gymnasium. Cheney and Hart explained some of the intricacies of the plan to several individuals, reiterating the same idea with each answer: Social Security is a problem that needs to be solved

“The president is bound and determined to stay on course with this until we get something done,” Cheney said in response to a woman who inquired about educating those in high school and college about the plan.

He added that almost everyone in America understands that the future of Social Security looks problematic.

“If someone stood up and said, ‘There’s no problem with Social Security,’ they know enough to say no,” he said.

Kim Miller, of Mt. Lebanon, Pa., questioned Cheney about the consequences of not investing in this plan.

“From the perspective of the younger generation, say we don’t do this,” the 28-year-old woman asked. “What if we leave the system as is?”

Hart referred to the plan as a long-term investment, and reiterated that if something is not done soon, the next generation will not receive any benefits. Cheney agreed with Hart’s analysis.

“My two daughters aren’t much older than you,” he replied to Miller with a smile. “And they have said they’re more likely to see a UFO than to see a check from Social Security.”