"I propose a Social Security system in the future where benefits for low income workers will grow faster than benefits for people who are better off,"
For the top 70% of wage earners, benefits will be cut. For the bottom 30%, they will stay as they are now.
See how he makes it sound like he is proposing an increase? I am so angry, I can hardly speak (thus, I blog). The Washington Times says he is proposing an increase. They are liars. CNN and Washington Post talk of "fixing" the problem. Only the NY Times is accurate in reporting: "Bush proposes cut in Social Security benefits."
Fox News reports the truth 2/3 of the way through its article, but adds "currently, all retirees face a reduction of benefits to 73% of current levels when the trust fund goes broke in 2041." That is another lie. The law as it stands does not mandate cuts. In fact the reverse is true: the law reuires current benefits must be paid! Bush wants to break the law rather than add funding from the general fund. Or just borrowing the $$ as he does for everything else!!!!!!
The Bush administration projects the trust fund will hit zero in 2041. Unless funds are increased from some source, they project a need to cut benefits which could be done at 27% across the board... if projections are accurate 35 years out. Remember the projections of $5 trillion surpluses just 5 years ago. The fact is that by raising the "cap" we can resolve all problems. The "cap": currently, the payroll tax is 6.5% of income up to $90,000 - beyond that, no tax!. Why, exactly, should professionals like me stop paying Social Security taxes midway through the year? I would gladly pay SS taxes on more of my income if that would guarantee retirement benefits for all, rather than raising the retirement age or cutting benefits. I mean, I like the extra money in my pocket, but to take that money at the expense of others is wrong. I don't think any Republican has ever uttered that phrase. Take what you can get, right? That's the difference between us. What a ridiculous idea to suggest that those of us in our 30s pay so that boomers can get full benefits, while we get benefits that will be dramatically less (do the math: increase a theoretical benefit of $30K/year by 3% over time in one column, 2% in another -- see the difference it makes over 40 years).
That's what I mean when I say I vote on moral values.
Friday, April 29, 2005
Posted by The Law Talking Guy at 8:06 AM