The Cato Institute, a Libertarian Washington think tank, is applauding Texas Gov. George W. Bush’s proposal to let individuals invest a portion of their Social Security taxes in individual accounts.
‘‘Gov. Bush obviously reads the polls. They show strong support for personal accounts among all Americans, but particularly among minorities and the young,’’ said Michael Tanner, director of Cato Institute’s Project on Social Security Privatization. The Cato Institute is a big proponent of giving individuals control over their Social Security payroll taxes.
Mr. Bush, who today in California outlined his proposal for saving the financially shaky system, did not specify how much of the payroll taxes he would like to see going into the individual accounts, but his plan is based on a proposal by economist Carolyn L. Weaver, a Bush campaign consultant who, as member of the presidential Social Security advisory council, earlier had suggested two percentage points of the 12.4% payroll taxes be allowed to go into the new retirement accounts. Mr. Bush also said he would not increase the payroll taxes to stabilize the Social Security system.
