Bush, Lawmakers Discuss Social Security

[maddezmom]

WASHINGTON - President Bush (news - web sites) sought support from congressional leaders of both parties Monday for his aggressive proposal to overhaul Social Security (news - web sites) during his second term.


Bush wants to revamp Social Security by letting younger workers divert some retirement contributions into private investment accounts, which critics argue might hurt the workers more than help them. In 2018, the federal retirement system will start paying out more in benefits than it collects in taxes.


"Today's system is unsustainable," White House press secretary Scott McClellan told reporters Monday. "Younger workers are facing massive tax increases or massive benefit cuts if we don't act."


~snip~

Bush has not said how an estimated $2 trillion transition costs to his revamped Social Security program would be paid for. Record deficits, Bush's desire to make his five rounds of tax cuts permanent and the rising cost of war in Iraq (news - web sites) and Afghanistan (news - web sites) are major obstacles.


"There will be some upfront transition financing that will be needed to move toward a better system that will allow younger workers to invest a small portion of their own money into personal savings accounts," McClellan said.

more: http://story.news.yahoo.com/news?tmpl=story&cid=544&ncid=703&e=6&u=/ap/20041206/ap_on_go_pr_wh/bush_social_security

[Florida_Geek]

1. Other than Zell I would hope

after AARP gave it the thumbs down, Dems would do the same.

[Obviousman]

2. Is it just me

Or does this seem like an issue he hardly campaigned for, and yet is pushing for with all his efforts.

[sandnsea]

5. Kerry was lying about SS

Don't you remember? Just more Democratic lies agains poor Bush. :nopity:

dumbasses.

[gratuitous]

3. Gee, isn't that nice?

None of them are dependent on Social Security, but they're all over this issue aren't they? I guess the prospect of billions of dollars just sitting there and they can't get their grubby mitts on it is just too much to bear.

Still feeling real safe, all you seniors who voted to continue this nightmare administration? Your turn is coming.

[WyLoochka]

4. It's not just seniors

who will be affected. The most affected could be the "sandwich generation." That's the generation that has elderly parents, who may need financial help after the repukes kill SS, and college age kids who they are trying to get through school at exorbitant tuition rates while availablility of student loans, grants and scholarships is declining.

The benefits of Social Security ripple throughout our society, they don't just inure to the beneficiaries alone.

[maddezmom]

6. financed in part by new gov't borrowing that could top $1 trillion

Bush's economic advisers have been analyzing financing options for more than a year. But the White House, until now, had declined to say that borrowing would be used to cover the transition costs. Experts say Bush has few other options because of record federal budget deficits. The president has ruled out tax increases.


"There will be some upfront transition financing that will be needed to move toward a better system that will allow younger workers to invest a small portion of their own money into personal savings accounts," White House spokesman Scott McClellan said.


Asked if transition costs, estimated at between $1 trillion to $2 trillion, would be financed by government borrowing, he added: "That's what you're looking at doing as part of the transition to a better Social Security system."

http://story.news.yahoo.com/news?tmpl=story&e=3&u=/nm/20041206/pl_nm/bush_socialsecurity_dc

[snippy]

8. Borrowing to cover transition costs is only one small part of the problem.

Everyone has always known that the amounts in the Social Security trust fund would someday have to be borrowed in the bond market in oreder to pay future benefits. Depending on the details of Bush's plan, borrowing the transition costs may just be bringing that borrowing forward in time. The details of Bush's plan will have to address several other questions that may matter more than the amount borrowed to cover transition costs.

Among those questions are:

Will benefits be reduced for people who choose not to participate in the private accounts?

How much are benefits going to be reduced for each age group participating in the private accounts?

How will survivor benefits be affected, especially for participants in the private account system who then die young?

Will the decision to participate in the private account system be irrevocable?

What investments will the government allow individuals to make in the private accounts?

What other decisions, such as asset allocation and rebalancing, will the government allow individuals to make and how often?

What will be the administrative costs of the private account system and who will pay such costs?

What limits, if any, will the government place on future increases in the administrative costs?

What remedies will the government allow to private account participants for misfeasance and malfeasance by the managers of the accounts?

What safety net will exist for participants in the private accounts who have catastrophic losses in their accounts after or near retirement age?

I am sure there are other questions as well, but I doubt that Bush will have answers to these questions that satisfy even his supporters.

[indepat]

7. Surely no one should be surprised for Greenspan signaled this shortly

before his renomination as Fed Chairman. How in the hell did any solitary living soul think the massive cuts would be funded if not by cutting social security benefits (and Medicare)? Enjoy for we the people get the government we so richly deserve along with all the little zingers and other lagniappe we should have seen coming asobvious from day-one. Hail to the Chief: the American people have spoken.