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The Bush Administration has spent considerable effort focusing on Social Security and seeking to convince Americans that radical changes are needed in the program. The centerpiece of the proposal is the creation of private accounts by diverting approximately two-thirds of an employee’s Social Security payroll (FICA) taxes (which is almost one-third of total payroll taxes – from employer and employee combined) from the Social Security Trust Fund (the Trust Fund). This essay considers eleven assertions (“myths”) that underlie this effort.

Our purpose is to set the record straight on the current Social Security privatization debate and provide a firmer foundation for debates that will surely arise in the future. We have consulted many sources; selected ones are listed at the end of the paper. We encourage readers to scan these sources, as there is a great deal being written on this topic almost daily. They consistently reflect the themes laid out in this essay.

Released December 2005

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