Interesting about those annuities. They make sense, from the standpoint of forcing folks to behave as if they were still on Social Security Classic™, but I suspect the intent is largely the same as the earlier investment accounts: To shove more money into the corporate sector. (I’m just surprised that none of it is going to Big Oil yet.)
Even from a “conservative” philosophical standpoint, the private accounts plan I’ve heard so far seems like a primary purpose is to move tax money into the private sector. After all, the “It’s your money and you know best how to deal with it” argument only makes sense if we were free to simply not pay that portion of our Social Security tax and use the money however we pleased. However, does anyone think the social cost of such a plan — taking care of those who frittered their money away — wouldn’t far outweigh the cost of our current plan of enforced frugality and wealth redistribution?
Want a method for “saving” Social Security? Drop the fiction that you get out what you put in and treat it as another income and payroll tax. In other words, tax everything in a progressive manner, including earnings over $90K, which are currently exempt.