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Protecting Social Security

President Bush wants the American public to believe that there is a crisis in the Social Security program and that the solution is to privatize the program. He is dead wrong on both counts. 

Bush’s plan would replace a portion of Social Security with risky private accounts, resulting in at least a 30 percent cut in guaranteed future benefits. Diverting money to private accounts would mean the federal government would have to add to already record deficits by borrowing trillions of dollars to make up for lost revenue.

The plan is even bad for public employees not covered by Social Security, because it could lead to the dismantling of our traditional pension plans. California Gov. Arnold Schwarzenegger (R) is already pushing to scrap California’s defined-benefit program for its retired public employees and turn it into a risky 401(k) savings plan. The long-range funding of benefits can be ensured through modest fixes and does not require the dismantling of a program that has worked successfully for 70 years. Currently, income over $90,000 is not taxed for Social Security. Ending the "wealth wage exemption" for high-income earners is one way to ensure full funding of benefits for current and future beneficiaries for another 75 years.

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