House GOP Propose Own Social Security Plan
House GOP Members Come Up With Their Own Version of Social Security Overhaul
By GLEN JOHNSON Associated Press Writer
The Associated Press
WASHINGTON Jun 30, 2005 — House Republicans, who have watched Democrats stymie President Bush's proposed Social Security overhaul, are marching ahead with a plan of their own. In a bill they expect to vote upon by autumn, House GOP leaders propose to "stop the raid" on surplus Social Security funds by depositing bonds equal to the extra money in private investment accounts linked to workers under age 55.
While the Republicans plan to continue spending the money for at least the next three years on other government programs, tax cuts and even the war in Iraq, they believe their creation of the accounts will put Democrats at a disadvantage. Next year's surplus is estimated at $88 billion.
"This is not too far too fast. … This is a step we can take right now" to modernize Social Security, said Rep. Roy Blunt of Missouri, the third-ranking GOP leader.
Democrats, however, see the proposal as not only more of the same, but worse than what has been proposed by Bush. He has called for diverting a portion of the payroll taxes that currently are used to pay the benefits of existing retirees.
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