William G. Horter – 5/17/05

This page was last updated on May 22, 2005.

Failed private pensions; William G. Horter; Beaver County Times; May 17, 2005.

Below is a detailed critique of the subject letter.

“I wonder if our congresswoman, U.S. Rep. Melissa Hart, took notice of the pension problems of United Airlines the other day.

“She seems hell bent on ‘privatizing’ our Social Security system, but does she realize that the United Pension fund was ‘private?’”

[RWC] No one proposes privatizing Socialist Security. A proposal on the table is to allow workers to assign a small portion of their Socialist Security taxes to a personal account. At all times the personal account would be under the control of the Socialist Security Administration.

“Invested in the market.

“Didn’t grow enough to stave off the takeover by the taxpayers.”

[RWC] Growth wasn’t the problem and I’d be willing to bet Mr. Horter knows it. United underfunded its pension plan. It doesn’t matter how well your investments perform if you don’t put enough money in the plan.

Taxpayers aren’t taking over the United pension plan. The PBGC is taking over the plan and the PBGC is funded by insurance premiums and the pension plans themselves.

“Now, she wants to have our kids’ Social Security at that same risk?

“I don’t really think she’s really thought it all through. My impression is that she simply follows the dictates of Bush and Delay, et. al., trying to be the best little soldier (besides U.S. Sen. Rick Santorum) that she can be.”

[RWC] Why are folks like Mr. Horter so afraid to give workers the option? Remember, workers won’t be forced into personal accounts. Each worker can make the choice that makes the most sense for his situation.

“Remember, to set up this gamble, at least $2 trillion would have to be borrowed.”

[RWC] I wonder what Mr. Horter’s opinion is of labor union pension plans. Are labor unions gambling with their members’ pensions? After all, all labor union pension plans have stock market investments.

While on the subject of labor unions, United is heavily unionized. Why didn’t contracts negotiated by labor union management ensure the pension plans were properly funded? Isn’t looking out for the financial welfare of union members one of the reasons labor union management collects dues from members?

“This on top of the astounding growth of the federal deficit already incurred during Bush’s regime.”

[RWC] Does anyone really believe a liberal cares one whit about deficits?

“What we don’t need is another wag-the-tail sort of legislator. We need someone unafraid to buck the leaders when they are wrong.”

[RWC] I agree, but personal accounts are the right thing to do as long as we’re stuck with Socialist Security.

On a side note, I wonder what Mr. Horter’s opinion was of former Sen. Zell Miller (D-GA) when he bucked Democrat Party leaders?

“Social Security needs some further revenue. That’s it. Raising the cap on earnings, a simple move like that, would solve this ‘problem’ for decades to come.”

[RWC] Wow, what an original suggestion! Raise Socialist Security taxes. As I pointed out in a critique of a previous Horter letter, we’ve been increasing Socialist Security taxes for 70 years and it’s still not enough.

At least Mr. Horter is consistent. This is the same “solution” he proposed three months ago.

Even Mr. Horter concedes a tax increase would not permanently solve Socialist Security’s funding problem when he wrote an increase would merely address the issue “for decades to come.” In this assessment, Mr. Horter is correct. An AP story indicated even completely eliminating the max taxed earnings cap would only push back SS’s critical dates by 7 years (when outlays exceed taxes) and 38 years (when the surplus is exhausted).¹

“Then, we could get on to the real problems, like health care, Medicare and Medicaid.”

[RWC] Does anyone want to bet if President Bush were focusing on “health care, Medicare and Medicaid,” Mr. Horter would tell us the “real” problem was Socialist Security?

1. Social Security Tax May Mean More Money; Laura Meckler; Associated Press; February 18, 2005.