Conclusion is the Same: Bush's Privatization Plan Will Only Hurt Social Security

Conclusion is the Same: Bush's Privatization Plan Will Only Hurt Social Security

March 24, 2005

Despite President Bush's confused effort to convince Americans the sky is falling, the Social Security Trustees report yesterday changed little about our understanding of the underlying conditions.  Although some changes will be necessary to ensure Social Security's long-term solvency, one thing is clear:  President Bush's efforts to borrow trillions of dollars and divert Social Security funds into private accounts will only make matters worse.

• The "Trustees Report" does nothing to support the president's claims about Social Security.  According to the most recent Social Security trustees report, the program will be able to pay full benefits to all beneficiaries until 2041 without any reforms. Five years ago, the trustees predicted that the program would be to pay out full benefits until 2037. Despite the scare tactic by those eager to privatize the program – Social Security's financial condition has been improving and with modest changes will be solvent for years to come.
  
  
• Here's a simple idea: repeal President Bush's handouts to wealthy to help save Social Security.  Permanent extension of President Bush's tax cuts for the wealthy will cost taxpayers $12.3 trillion over the next 75 years, according to the Center on Budget and Policy Priorities.  By simply repealing the tax cuts for the top earners, we could save more than enough money to cover the $4 trillion projected shortfall estimated for Social Security over the same period.
  
  
• Bush's plan to borrow trillions of dollars and divert payroll taxes to private accounts is the surest way to kill Social Security.  The president himself admits his privatization scheme will do nothing to help Social Security's solvency.  In fact, it will only hasten the demise of the program by taking money out of the program, forcing huge benefit cuts, and borrowing trillions of dollars to finance the transition.  In the end, Americans will face a less secure retirement and younger workers will be severely burdened with the costs of Bush's privatization debt. 

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