Mar 10, 2005
Northup & Bush Won’t Tell Louisville About the Ugly Details of Their S.S. Privatization Plan
Mar 10, 2005
Northup & Bush Won't Tell Louisville About the Ugly Details of Their S.S. Privatization Plan
With President Bush in Louisville today, GOP Rep. Anne Northup has reiterated her support for President Bush's Social Security privatization plan. [WAVE News, 3/8/05]
However, Bush and Northup aren't likely to level with Kentucky's seniors and future Social Security beneficiaries about the ugly details of their privatization plan. Among those details is the fact that over 163,000 disabled and blind Kentucky residents are relying on Social Security's SSI benefits today and can't afford the cuts in benefits that are part of the Northup/Bush plan. [ssa.gov]
Today, DCCC Chairman Rahm Emanuel (IL) challenged Bush and Northup to come clean about the consequences of their plan and explain how they would protect disabled Kentuckians from benefit cuts.
"Louisville deserves to know the facts about the Northup/Bush privatization plan that adds to Social Security's financial burden while cutting guaranteed benefits," said DCCC Chairman Rahm Emanuel (IL). "Also, the benefit cuts under the Northup/Bush plan could be devastating to the families of over one hundred thousand disabled Kentucky residents who rely on Social Security today to make ends meet."
Ugly Details of Northup/Bush Plan:
What Would Happen to over 163,000 in Kentucky Who Get Social Security for Disabilities (SSI) Under Northup/Bush Plan?
In Kentucky, 163,167 disabled and blind received federally administered Supple Security Income payments in December 2003. Republicans have recommended barring access to the accounts prior to retirement age under the Northup/Bush plan.
This means that if a worker who becomes disabled is unable to work, they will be unable to benefit from their contributions to the individual account. It will be difficult for retirees to make up the cut in benefits with their private accounts. A twenty-year-old worker today has a 30 percent chance of becoming disabled before reaching retirement age. [Consortium for Citizens with Disabilities Congressional Testimony, Hearing on Social Security Disability and Survivors' Benefits, House Budget Committee Task Force on Social Security, 6/22/99]
Guaranteed Benefits Cut Up to 46 Percent
According to the Center on Budget and Policy Priorities, guaranteed benefits under privatization would be cut by 46 percent for many beneficiaries. [CBPP, 1/28/05]
Northup/Bush Plan Adds $4.9 Trillion to National Debt in First 20 Years
While White House estimates falsely skew the cost of the plan, the actual cost would be much higher than estimated and would add more than $4.9 trillion to the debt over its first 20 years. Over the first ten years that the plan was in effect (2009-18), it would add about $1.4 trillion to the debt. Over the next ten years (2019- 28), it would add about $3.5 trillion more to the debt. All told, the plan would add $4.9 trillion (14 percent of GDP in 2028) to the debt over its first 20 years. [CBPP, "An Overview of Issues Raised by the Administration's Social Security Plan, 2/7/05]
Northup/Bush Plan Does Nothing to Extend Long-Term Solvency of S.S.
Even White House officials acknowledge that the Bush plan will do nothing to restore solvency to Social Security. According to the LA Times, "In a significant shift in his rationale for the accounts, Bush dropped his claim that they would help solve Social Security's fiscal problems - a link he sometimes made during last year's presidential campaign [LA Times, 2/3/05]