Core message on Social Security privatization

April 1, 2005

Retirement security is being seriously weakened, with attacks on private pensions and public employee funds. Now the Bush administration wants to privatize Social Security, forcing benefit cuts and increasing the deficit. We can strengthen Social Security with commonsense fixes, but working families will not accept a plan that makes our retirement LESS secure.

1. Privatization of Social Security makes Americans' retirement LESS secure by cutting guaranteed benefits 30 percent even for those who don't choose a privatization account - and risky privatization accounts won't make up the loss. For people who choose private accounts, the government would take back 50 cents for every $1 in the private account, according to analysis of the president's privatization commission report. That increases the guaranteed benefit cut for those who privatize to 50 percent. The average retiree would lose a total of $152,000 in guaranteed benefits under privatization if she lives for 20 years after she retires. Many seniors would end up in poverty and have to be taken care of by the taxpayers. Working people should get the benefits they paid for - not benefit cuts.
2. Privatization hurts the economy and explodes the deficit, passing huge new bills on to our children by borrowing $2 trillion in the first decade alone, mainly from foreign bankers in China and Japan, to fund the plan.
3. Privatization opens the Social Security system up to corruption, waste and Enron-ization because politicians will decide which Wall Street firms are handpicked to make billions in inflated fees off our private investments. Decisions about Americans' retirement security should be based on what's best for average people, not tied to wealthy friends whom politicians want to help or to companies that have political influence.
4. We must strengthen Social Security, but we must take the time to get it right. We can strengthen Social Security without slashing benefits. First, we must require Congress to pay back the money borrowed from the trust fund. We could end the "wealthy wage exemption" so CEOs pay the same Social Security taxes on their salaries as we pay on ours. We could repeal the Bush tax cuts for the top 1 percent of taxpayers. And we could help working families build private pensions and savings on top of Social Security. Americans deserve the benefits we paid for, and we will not accept a plan that makes things WORSE.


Home \| About the Network \| Bulletins \| Resources \| Events \| Contact
Core message on Social Security privatization April 1, 2005 Retirement security is being seriously weakened, with attacks on private pensions and public employee funds. Now the Bush administration wants to privatize Social Security, forcing benefit cuts and increasing the deficit. We can strengthen Social Security with commonsense fixes, but working families will not accept a plan that makes our retirement LESS secure. 1. Privatization of Social Security makes Americans' retirement LESS secure by cutting guaranteed benefits 30 percent even for those who don't choose a privatization account - and risky privatization accounts won't make up the loss. For people who choose private accounts, the government would take back 50 cents for every $1 in the private account, according to analysis of the president's privatization commission report. That increases the guaranteed benefit cut for those who privatize to 50 percent. The average retiree would lose a total of $152,000 in guaranteed benefits under privatization if she lives for 20 years after she retires. Many seniors would end up in poverty and have to be taken care of by the taxpayers. Working people should get the benefits they paid for - not benefit cuts. 2. Privatization hurts the economy and explodes the deficit, passing huge new bills on to our children by borrowing $2 trillion in the first decade alone, mainly from foreign bankers in China and Japan, to fund the plan. 3. Privatization opens the Social Security system up to corruption, waste and Enron-ization because politicians will decide which Wall Street firms are handpicked to make billions in inflated fees off our private investments. Decisions about Americans' retirement security should be based on what's best for average people, not tied to wealthy friends whom politicians want to help or to companies that have political influence. 4. We must strengthen Social Security, but we must take the time to get it right. We can strengthen Social Security without slashing benefits. First, we must require Congress to pay back the money borrowed from the trust fund. We could end the "wealthy wage exemption" so CEOs pay the same Social Security taxes on their salaries as we pay on ours. We could repeal the Bush tax cuts for the top 1 percent of taxpayers. And we could help working families build private pensions and savings on top of Social Security. Americans deserve the benefits we paid for, and we will not accept a plan that makes things WORSE.
The New York State Social Security Network is a coalition of labor, community, retiree and consumer-oriented groups working together to educate New Yorkers about Social Security.