2005/02/07

Won't say Social Security plan



As promised, President Bush would allow workers younger than 55 to begin investing about one-third of the 12.4 percent payroll tax in private accounts. But this has transition costs -- $1 trillion the first 10 years and $3.5 trillion the second 10. The administration has not said how these would be paid, except that it won't be through tax increases.

At some stage, the administration says, private accounts will begin saving the government money, but officials won't say when that will be.

Workers who opt for private accounts will naturally see cuts in their guaranteed benefits -- the administration prefers the euphemism "benefit offsets" -- but won't say how large those will be.

The private accounts would be invested in a limited range of stock, bond and T-bill funds, the same ones currently available to federal workers. While the risk may be negligible, there is still a risk, and the administration didn't address the question of what happens if the markets don't go up.

There is also the question of what to do about the 16 percent of Social Security recipients who are disabled -- and receive $66 billion annually -- or children.

And the president mentioned, but did not address, the most intractable problem of all: too few workers supporting too many retirees.

4 Comments:

That's the thing. Bush's plan not only doesn't fix what IS wrong with Social Security, but actually will likely do the program a lot of damage, which fits the neo-con's obvious long-term goal (to kill it.) Time to pay really close attention to how your Senators and Representatives vote on this one. Time to send them some letters as well. 

Posted by Sarah
2/07/2005 06:08:00 pm  
...what happens if the markets don't go up.Everyone will be screwed, to put it bluntly. What also irritates me is that they keep saying that Social Security is "in crisis" but don't say that part of the reason for the crisis is that our politicians have been dipping into the SS trust fund for years. 

Posted by Jenni
2/07/2005 07:23:00 pm  
“The administration has not said how these would be paid, except that it won't be through tax increases".

Bush is probably still counting on those mega cubic meters of oil flowing freely from Iraq to the US via a gigantic PipeLine Of Freedom.

“...the question of what to do about the 16 percent of Social Security recipients who are disabled -- and receive $66 billion annually -- or children.".

I've hear of a grand scheme to buy millions of large shoe boxes and allocating reserves for these ppl in the subways corridors. 

Posted by WhyNot
2/07/2005 08:11:00 pm  
The thing is, he's been obsessed with this ever since he was governor of Texas. The real crisis is with medicare, and his solution to that is to cut benifits as well. He's going to have our seniors in homeless shelters 

Posted by angiekruger
2/08/2005 01:55:00 pm  

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