@groverloaf:
I liked Paul O'Neill's plan for Social Security Reform. That is what he wanted to do with the surpluses instead of the gigantic tax cuts. Essentially, for the first 18 years of someone's life, the government puts $2000 into a fund in their name. This is invested in some very safe way...either government bonds, or maybe a total market fund. You leave that money in to just keep gaining until the person is 67, and then it pays out like Social Security until it runs out.
Here:
"One new proposal emerging from the national debate on how to overhaul Social Security could make every American a millionaire at age 65.
Paul O'Neill, President Bush's first treasury secretary and a former chief executive officer of aluminum giant Alcoa, proposes having the government stake every American baby at birth to an investment savings account. By the time the child retires, the account would contain $1 million or more. The idea is drawing attention from an unusual coalition of lawmakers from both parties, liberals as well as conservatives.
To move away from Social Security's chronic funding problems, O'Neill suggests that the government put $2,000 in a special investment account for every newborn American. The government would invest $2,000 more each year until the child reaches 18.
The money would be invested in a conservative index of stocks and bonds and couldn't be touched until retirement. The investment would grow at a compounded rate, meaning that as the value of assets in the account grows, profit would be reinvested so the account would grow even more. Without adding a single cent beyond compounding after the child turns 18, he or she would retire at age 65 with $1,013,326 in the account, O'Neill said.
''If you do the arithmetic, the $1 million would provide an annuity of $82,000 a year for 20 years,'' O'Neill said in an interview.
O'Neill assumes a 6 percent annual return on investment. He calls that figure conservative since it represents the worst performance to date of any 25-year cycle on Wall Street."
From this site:
http://brothersjuddblog.com/archives/2005/02/bring_back_paul_oneill.html
Just off a quick search.