Does anyone know anything about this?

Attention SarahK: This is politics, not accounting; however it's borderline, so you might want to skip it.

This is somewhat disturbing (subscriptions site):

On December 15, Congressmen Robert Matsui (D-CA) and John Spratt (D-SC) took aim at presidential efforts to reform Social Security by highlighting a lesser-known item in most reform proposals called the “Claw Back” provision. Under this measure if a taxpayer’s private account reaps more than a 2 percent rate of return over what would have been achieved in the current system the government confiscates the extra money.

“You’re not going to get wealthy from these accounts,” said Matsui. “It’s called a claw back provision.”

Republican sources contend that the provision will not be a part of any reform plan put forward. The reason why the Democratic congressmen raised the point today was because the measure is a part of the proposal President Bush now alludes to. Most comments of his on reform stem from the second of three options included in a report authored by a Social Security reform commission in 2001. (Emphasis added.)

Is this really in there?  Are they really batting around a privatization plan where the government confiscates the money if you do well?  What on earth is the point of privatization if you don't get to enjoy the benefits of your investment?

I haven't had a chance to investigate this, but it certainly sounds like something to be watching out for.

Comments

[sarahk]

that's absolutely insane.