May 7, 1997
Washington, D.C. -- The National Association for the Self-Employed, which represents over 325,000 small business owners nationwide, and Economic Security 2000, a national grassroots organization to save and reform Social Security, have teamed up to take their message of the importance of meaningful public pension reform to citizens across the nation.
"The NASE and Economic Security 2000 intersect at an important crossroads for America's future," said NASE President Bennie L. Thayer. "This team will create energy and excitement across America, and will help lead to real, meaningful reform that assures a working public pension system for generations to come.
"More than nearly any other type of worker, the self-employed are being disadvantaged by problems in the current system," Thayer continued. "The self-employed are `triple-taxed,' paying both the employer's and employee's share, and then -- like other Americans -- paying taxes on the employee share, which is not deductible from federal income tax." The current Social Security rate for the self-employed is 15.3 percent, which must be paid from gross income -- before taxes and most other expenses are paid.
"But at the same time, the self-employed are the most dependent upon the solvency of the system," Thayer added. "Since they frequently lack private pensions and have limited access to other savings vehicles, small business owners are usually completely responsible for their own retirement funds. But a recent NASE survey of the self-employed showed that sixty percent had saved less than $50,000 for their retirement, and forty percent had saved less than $20,000. If Social Security is forced to sharply curtail benefits or even goes bankrupt, this group will be left in the cold."
"We have a tremendous opportunity, through grassroots education and involvement, to save Social Security and open the economic rewards of America to all workers," said Economic Security 2000 Founder Sam Beard. "Working with The National Association for the Self-Employed is an exciting leap forward."
The NASE and Economic Security 2000 favor reforms that would allow taxpayers to manage a portion of their social security taxes in carefully-regulated, IRA-type accounts. According to a recent NASE poll, 65 percent of small business owners favor self-directed accounts, with 42 percent strongly supporting such an option.
"These accounts would not only save Social Security, but would open savings to every working American, and break the cycle of dependence on future generations," said Beard. "Most Americans, especially the self-employed, do not have the resources to invest and save for the future. By using Social Security's existing tax base, every American can own a stake in their future."
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