Ways and Means Social Security Chairman Earl Pomeroy (D-ND) today released the results of a study from the Chief Actuary of Social Security analyzing several proposals, including those advanced by Republican Congressional leaders, as ways to reduce the long-term cost of Social Security. The analysis reveals that, contrary to the assertions by their proponents, these proposals would have a profoundly negative impact on the retirement security of middle-class seniors in addition to high-income retirees. ...
The Office of the Chief Actuary analyzed several proposals - including those by Budget Committee Ranking Member, Rep. Paul Ryan (R-WI), and Minority Leader John Boehner (R-OH) - that claim to make "modest" changes affecting higher-income seniors in order to "save" Social Security.
"The new analysis reveals that these proposals result in benefits cuts ranging from ten percent to as high as 50 percent,” continued Pomeroy.
Ryan spokesman Conor Sweeney said [Social Security's chief actuary, Stephen] Goss did not analyze the full effect of Ryan's plan to balance the federal budget and ignored Ryan's proposal to guarantee a higher minimum benefit to low-income retirees. More to the point, Sweeney said, failing to overhaul Social Security - which is already paying out more than it collects from payroll taxes - will cause more immediate harm.
"According to the Social Security Administration, Congressman Pomeroy's do-nothing plan will impose painful, across-the-board benefit cuts on current seniors and those nearing retirement," Sweeney said. "It is deeply irresponsible for elected leaders to stand idle with icy indifference as the social safety net collapses."
4 comments:
Maybe someone should explain that to the old middle-class seniors before they republican?
Of course there is nothing wrong with thinking that the unsustainable will always continue. /sarc off
There are no(and will not be)easy and pain-free answers to these problems. Eventually, the piper is always paid...and payday is much closer than many of us want to admit.
Frankly, it scares me to watch the news reports of what is happening in France. The USA is on the same path - just not as far along. We face serious issues that will force us to actions that are going to be hard for many of us.
Look at what has be proposed in the U.K.
http://www.bloomberg.com/news/2010-10-20/osborne-pledges-8-billion-reduction-in-u-k-debt-costs-amid-spending-cuts.html
It has to be done here sooner or later and sooner the better.
I'm happy to see what is happening in France. The people in the UK should be doing the same, it seems to me - cutting spending during an economic downturn just makes things worse.
As for Social Security, it is in good shape for now, but assuming the projections are correct, will require modest and gradual payroll tax increases in the future to fully fund benefits. It's not hard at all.
There have always been people who don't like Social Security. A few years ago, they were saying that it was too stingy and so we should support privatizing it (partially). Now they're saying it's too generous and we can't afford it. I don't think it's perfect, but it's about the best thing the gov't does. Leave it alone, for now.
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