In this briefing paper from the Economic Policy Institute the author talks about George Bush's proposal to redirect A SMALL PORTION of a worker's payroll tax for Social Security into private accounts. " Under the Bush proposal, workers would be able to divert part of their Social Security payroll tax, reportedly two percentage points, into private accounts." This proposal created a Voluntary Retirement Account. Under this arrangement the worker would have a choice of five diversified, low-cost mutual funds to contribute to.
After retirement, these workers would receive smaller Social Security benefits because it is expected that some of their retirement income would come from these funds. If you want to read a truthful Q & A on the subject click here.
That proposal meant that individual workers would VOLUNTARILY be allowed to divert their payroll taxes to individually owned accounts, similar to their IRAs or 401(k) programs. There would be a "lockbox" that would really work, a Trust Fund that could never be raided.
Paul Kanjorski would have the world believe that George Bush wanted to eliminate the Social Security Administration and privatize its operations. Folks, that isn't stretching the facts, that is lying to the American people. The constituents of Pennsylvania's 11th district deserve better.
What George Bush and Congress did do that Kanjorski won't own up to is force you and me to work extra years to pay for raiding the Social Security Trust Fund to the tune of $4 trillion dollars. That single act reduced the number of retirement years we will collect Social Security and spend in retirement. A higher normal retirement age means that 35-year-old workers in 2002 would have to work an additional six or seven years before they could receive full retirement benefits or retire early with substantially reduced annual benefits. Benefits at age 62 would be paid at 70% of full retirement. As you waited additional months to retire after 62 the benefit would increase based on a sliding scale.
Paul Kanjorski and Congress reduced our retirement benefits! He has the gall to talk about the privatization issue while he is picking our Social Security pockets each and every day. Raising the retirement age was part of the proposal to let people keep a small portion of their Social Security tax payments. Social Security would have been invested in financial assets not government promises to raise future taxes.
Paul Kanjorski is not telling you is the real Social Security story. The tax you and I pay into the Social Security system goes to pay benefits to people on Social Security today. It does not go into an account that pays us when WE retire.
His ad that states privatization would have hurt seniors due to the current market crash is an out and out lie. The proposal to privatize a small portion of the Social Security tax payment would affect young workers, not present retirees. If you were 35 in 2002 you cannot retire and receive a full benefit until you are 67. We would have to know how the market would be in 2034 to predict how it would affect those accounts that would only represent part of your benefit at retirement. Keep in mind that the proposal would not let a person put all of the Social Security tax into a private account.
Present retiree payments are the obligation of the federal government and must be paid even if it means raising taxes. However, this statement from the American Federation of Seniors is a fact. "If we don't redesign the system, Congress will have to cut benefits, raise taxes, or both." To me, that is why Paul Kanjorski must go. He is incapable of thinking; he is incapable of governing; he is incapable of telling the truth.
Paul Kanjorski, STOP SCARING SENIORS. You are psychologically affecting our parents and our grandparents. PRIVATIZATION IS A DEAD PROPOSAL! Let it die in peace.