Social Security Formula Weighed

[cal04]

Bush Plan to Cut Promised Benefits
The Bush administration has signaled that it will propose changing the formula that sets initial Social Security benefit levels, cutting promised benefits by nearly a third in the coming decades, according to several Republicans close to the White House.

Under the proposal, the first-year benefits for retirees would be calculated using inflation rates rather than the rise in wages over a worker's lifetime. Because wages tend to rise considerably faster than inflation, the new formula would stunt the growth of benefits, slowly at first but more quickly by the middle of the century. The White House hopes that some, if not all, of those benefit cuts would be made up by gains in newly created personal investment accounts that would harness returns on stocks and bonds.

But by embracing "price indexing," the president would for the first time detail the painful costs involved in closing the gap between the Social Security benefits promised to future retirees and the taxes available to fund them. In late February or March, the administration plans to produce its proposed overhaul of the system, including creation of personal investment accounts and the new benefit calculation.

"This is going to be very much like sticking your hand in a wasp nest," said David C. John, a Social Security analyst at the conservative Heritage Foundation and an ally of the president. "And the reaction will be similar." In informal briefings on Capitol Hill, White House aides have told lawmakers and aides that Bush will propose the change in the benefits formula, an approach recommended by his 2001 Commission to Strengthen Social Security , according to congressional aides and lobbyists.

http://www.washingtonpost.com/wp-dyn/articles/A45726-2005Jan3.html?nav=rss_politics

[peacetalksforall]

1. First you unlock the lock-box and steal from the citizens

then you come back and cya with more theft.

Who is running this country - the citizens or representatives of corporations? It's time for a stand-down.

Off of your couch.

[indepat]

21. Could not happen to a more genuinely deserving public who have,

in astounding numbers, ratified runious tax cuts, an ultimate multi-trillion dollar raid on the mythical SS lockbox, pre-emptive war, et al, by returning an incumbant to office whose policies and most intentions were known, were there for all to see.

[thoughtanarchist]

2. Mr President*, I can save us 2 trillion...

just make the ROTH ira permanent.

bing. instant private accounts.

edit: spelling

[BOHICA06]

7. And mandatory?

for 2.5% minimum of your income with no limit after the age of 40.

[BOHICA06]

8. Then upon retirement ....

tax, upon withdrawal, for SS, MC, & income and remove the problem of declining workforce.

[BOHICA06]

9. Didn't Al Gore float this in 2000? n/t

[brentspeak]

3. Our Money + Bush's Policies + drooling Wall St. execs =

Grandma out on the street

[durablend]

10. Sorry, Grandma is OBSOLETE

"Just a drain on society (and it's wealth) and nothing else"

[Samantha]

4. Does the Bush* formula include repayment of the funds

the U.S. Government has "borrowed" over the years?

[baby_bear]

5. He plans trips around the US to tell current seniors they are OK

Do you think he will tell the rest of us we are f*cked?

My federal retirement is based on 1) SS and 2) 401(k).

If you screw SS, all I have is Wall Street, and god knows I lost almost all that when may else did in the late 90s.

I do not get this at all, except as a very, very strident method to get rid of the middle class.

I have a friend - wealthy - who says SS was never meant to provide for all of a person's retirement, but there are lots of arguments to that, e.g., what if you never make enough to sock away a fortune? Or what if you are a dedicated career federal employee who decided to forfeit possibilities of personal fortune in order to give to society through our contributions?

The Bushies seem to be telling everyone that if you don't aspire and succeed to personal millions, then you deserve nothing. So I expect to turn my Ph.D. into a Wal-Mart resume. Is that what this country wants?

b_b

[flaminbats]

6. this will be Bush's healthcare bomb..

legislation with well organized opposition, but few interest groups in support.

Healthcare reform split Democrats into factions..one supporting the Cooper bill, a liberal faction supporting McDermott's approach, and the Democratic leadership backing Clinton's approach. Ultimately Clinton was unwilling to settle for anything not mandating universal coverage, allowing Senate Republicans to pick up a single DINO necessary to filibuster the bill.

Ultimately Bush's Social Security takeover will have the same effect. It may initially gain some DINOs like Ben Nelson, Tim Johnson, and Max Baucas. But ultimately it will lose the support of many Republicans, particularly Senators up for reelection in blue states. For the first time in decades Democrats will be united and Republicans will be in turmoil. Will our party take advantage of this moral high ground, or treat it as just another political risk?

[papau]

20. Clinton was sold line "if no single payer, Ins co will support) - I know

because I was part of group that sold that line -

I thought we were telling the truth - then the ads started.

Hillary was the one that wanted single payer universal health coverage - and Bill said no.

He really thought the insurance types were telling him the truth.

And now our current spineless Dems are on their knees to the insurance companies.

[wishlist]

11. Once again Kerry's warnings were true, while Bushco and media lied

Kerry did his best to warn that Bush's plan would cut SS benefits drastically, and that we would find this out by January. He was not taken seriously since Bush's plans were not exposed by the media until after the election. Bush's 'mandate' is a total fraud.

Obviously RWingers consider the current SS formula as overly generous socialism since the current formula was purposely designed to combat dire poverty by being weighted to give an advantage to low income workers. You can bet the formula will be revamped if they get their way to remove any of the current advantages provided to lower wage workers.

[LynnTheDem]

12. Check out the DATE on this article:

Report Predicts Deep Benefit Cuts Under Bush Social Security Plan

http://www.nytimes.com/2002/06/19/politics/19SOCI.html?ex=1104987600&en=d93ab4effc7725c1&ei=5070&ex=1103086800&en=02fd1e95887df5be&ei=5070&oref=login&pagewanted=print&position=top

[nodictators]

19. Yes, Kerry had the non-partisan CBO evaluate Bush's SS plan

They reported that it would be a cut in benefits ot as much as 45%, or about $500/month for the average SS retiree.

A little arithmetic and the Life Expectancy tables, means that would be a loss of more than $100,000. Mega-OUCH!!!

Get the Social Security Trustees'(mostly Repubs) Full Report from the SS web site.

In the overview, they say that a less thatn a one percentage-point increase in the SS FICA tax would solve the problems.

My ongoing analysis of that same report shows that they have used simplistic models for their cost estimates. In fact, the SS Trustees say the system will exhaust the Trust Fund in 2042. The CBO said 2052!!

Bush's real plan: Bankrupt SS before 2018, so that they don't have to pay back the $2.3 trillion in the Trust Fund. That money was borrowed and squandered by the Repubs.

Bush wants to wreck SS by having younger people put some of the SS taxes into the stock market, thereby bleeding SS to death by 2018, or earlier.

[Massachusetts]

13. Amazing

No Crisis in Social Security, but Bu$hco continues the smoke in mirrors game to draw attention away from the REAL problems.

THE DEMS better grow some SPINE!

[Chimpanzee]

14. Just remove the 80K ceiling on SS taxes - problem solved!

[TaleWgnDg]

15. .

. . . . . . . . . . . . . . . . . . . . . . .

.

[liberal N proud]

17. Son of Sam?

Didn't he use that excuse?

[TaleWgnDg]

23. Hey, I think you're correct! n/t

[KansDem]

16. What is most annoying about this...

Bush hasn't worked a day in his life. His failed business ventures were all bailed out by his daddy's friends. Any "success" was due to connections and the access he "sold" to his father. He has not known financial need or adversity.

Yet, he decides how Social Security will be applied to millions of us who did work...did face financial adversity or need?

This is why we need a democracy in this country!

[lovuian]

18. 100 Million for Iraq and Nothing for AMERICANS

How Long can Congress keep cutting Americans and give to IRAQ and Americans just sitting by and watching them write the checks!!!

[deminflorida]

22. The shit will hit the FAN in Florida over this.....

especially among those who have recently relocated in anticipation of retirement in 10 to 15 years.

Any democrat that rolls over for this shit is nuts and I may add DOOMED in 2006.

You can bet your ass there's going to be a letter writing campaign to Bill Nelson about this. If he wants my vote in 2006, I better hear and see him taking part in the filibuster that is sure to come because of this.

:argh:

[Just Me]

24. The American people were warned.

At least half chose to listen to pathological liars.

What else can I say?

[struggle4progress]

25. Pelosi: GOP Plan Would Cut Social Security Benefits

Contact: Brendan Daly or Jennifer Crider, 202-226-7616, both of the Office of House Democratic Leader Nancy Pelosi, Web: http://democraticleader.house.gov

WASHINGTON, Jan. 4 /U.S. Newswire/ -- House Democratic Leader Nancy Pelosi released the following statement today in response to press reports detailing the Bush Administration's proposal to cut Social Security benefits:

"The Bush Administration has finally acknowledged that the centerpiece of its plan to radically overhaul Social Security is a benefit cut of more than 40 percent in the coming decades for every American senior. This is the equivalent of forcing seniors today to live at a 1940s standard of living. And, according to Republicans, nothing else is seriously on the table.

"I would hope that as we begin the 109th Congress, my Republican colleagues are prepared to do better than that. Drastic benefit cuts and the false promise of private accounts are recipes for disaster. Republicans keep saying that Social Security won't be there for today's workers -- and if they get their way, they'll be right. The Republican proposals put forth so far do not make Social Security stronger. They make it weaker.

"American workers have paid into Social Security for years and deserve to receive their full benefits. Rather than cutting benefits, we should be fighting to protect the only secure source of retirement funding that American workers have."

http://releases.usnewswire.com/GetRelease.asp?id=41173

[ThoughtCriminal]

26. Stop spending our SS contributions on tax cuts!

Stupid!

[struggle4progress]

27. Reid says there is no crisis in Social Security

U.S. Sen. Harry Reid said Monday that President Bush will face stiff opposition from Senate Democrats on his plan to overhaul Social Security.

Reid, who today becomes Senate minority leader in the 109th Congress, said he would tell his Democratic colleagues about his concerns Wednesday during the first caucus officially led by Nevada’s senior senator.

“There is no crisis in Social Security,” Reid said. “President Bush is trying to create one.

“The whole goal of this is to throw a sock at the fat cats on Wall Street. Keep in mind that if we do nothing, we will still be able to fully draw on Social Security until the year 2055.” <snip>

http://www.rgj.com/news/stories/html/2005/01/03/88974.php?sps=rgj.com&sch=LocalNews&sp1=rgj&sp2=News&sp3=Local+News&sp5=RGJ.com&sp6=news&sp7=local_news