Changes could save Social Security

To the editor:

President Bush believes Social Security can be fixed without raising the Social Security tax. Is he right? Yes, but only if we eliminate some of the sacred cows of the program. Here's how:

* About 5 million of America's state and local government workers are exempt from Social Security tax. By requiring newly hired state and local government workers to join Social Security, we could eliminate about 11 percent of Social Security's pending actuarial deficit.

* The current method of taxing benefits is illogical, inequitable and confusing. If we start taxing Social Security benefits the same way we tax other pension benefits, as much as 24 percent of the actuarial deficit could be eliminated.

* Spousal and survivor benefits are extra benefits because they are acquired by marriage, not by the payment of Social Security tax. Means testing those extra benefits to eliminate them for the wealthiest 30 percent of workers could eliminate up to 60 percent of the actuarial deficit.

These changes could eliminate up to 95 percent of the long-term Social Security shortfall and make the system more equitable. However, we believe workers should also be given the option of putting part of their payroll taxes into personal retirement accounts. A modest PRA plan could increase retirement wealth significantly and help bridge the gap between rich and poor by giving low-income workers a chance to bequeath assets to their children.

JOSEPH FRIED, Director, Public Program Testing Organization, Cleveland