4-10-05
A reader wanted to add to my Barbara Boxer joke of a response to preserve social security.

Here is his letter he received from his representative.

The Cliffs Notes read: Social Security provides us a fund to rip off after we have exhausted our normal means.

Sir:

Thank you for contacting me regarding the President's plan to privatize Social Security. I appreciate learning of your interest in this important issue.

For nearly 70 years, Social Security has demonstrated our national commitment to a decent and dignified life for older Americans. Without this important program, nearly 50% of the 47 million
Americans who receive Social Security benefits today would live below the poverty line.

Social Security is more than a retirement security program. One of every three Social Security beneficiaries is a disabled worker, a member of his or her family, or a survivor of a worker who has
died. <<comment:man we sure do have allot of derelict retirees in this country..Ya gotta love how these guys manipulate numbers to suit their needs>>Indeed, Social Security serves as a true safety net for Americans of all ages. In Rhode Island alone 191,960 people, or about 18% of the population, receive Social Security benefits.
The Social Security Trust Fund, which is financed through the collection of payroll taxes on current workers, has accumulated sufficient assets to pay all promised benefits until 2052. Under present conditions, the program would be able to pay roughly 80% of promised benefits beyond 2052.

Clearly, the demographic and financial challenges posed by the declining number of workers paying into the system and the impending retirement of the baby boom generation must be addressed if we are going to maintain our commitment to those just now joining the workforce.

However, the Administration's proposal to create private accounts does nothing to address these challenges. In fact, the President's plan to divert up to four percent of payroll taxes into private accounts would make the problem worse by accelerating the date of insolvency from 2052 to 2031.

Additionally, the President's plan would mean $4.9 trillion in additional debt and would subject all future beneficiaries to benefit cuts, regardless of their decision to participate in the voluntary private accounts program.

Many argue that privatizing Social Security would result in higher rates of return for retired Americans. However, Wall Street economists have criticized the Administration’s projections of a
4.6% return on private accounts. Indeed, a noted Wall Street firm, Goldman Sachs, estimates a return of 2.7% on private accounts, and finds that the debt created to fund the President's private accounts
would reduce traditional Social Security benefits within a range of 23 to 43%.

While I strongly believe that we must encourage more personal savings and investment for retirement, I do not believe it should be at the expense of Social Security, the one program that  offers stable, guaranteed income security to the elderly, disabled, and widows. It is important that we honor our promise to those who have worked hard and paid into the system to provide themselves,
family members, and fellow Americans with a safety net.

Although the President has not fully indicated his proposal for Social Security, his focus on private accounts is troubling because they do nothing to address the long-term solvency of the program.

Indeed, such accounts actually weaken it by diverting trillions of dollars in Social Security revenues.

Additionally, private accounts would saddle the American public with enormous up-front transition costs that would weaken the economy, require the borrowing of billions of dollars, and place the
burden of additional debt on future generations.

One of the most critical tasks facing the Congress is the debate over the future of Social Security. I value your thoughts on this debate, and you can be assured that I will keep them in mind as Congress considers this issue. Again, thank you for contacting me, and please do not hesitate to write or call regarding this or any other matter of interest to you.

Sincerely,
Jack Reed
United States Senator
http://reed.senate.gov

3-29-05

Social Security and Barbara Boxer

Recently I wrote to Ms. Boxer regarding plea to give our opinion about the Presidents Social Security program.

The only opening she gave was an easy to find form if you were against President Bushes plan.

I am for his plan as I believe that Social Security has been nothing but a legal way to steal from future generations.

But she sure did make it a pain in the ass to tell her so.

Finally, I found a contact form other than her official-easy to find against Bush form.

Her reply was the following:


March 4, 2005

Thank you for writing to express your concerns about President Bush's plan to partially privatize Social Security. I appreciate hearing from you.

Social Security is a crucial insurance program and an indispensable safety net for our people. It has been enormously successful. Before Social Security, over half of all seniors were poor. Today, 10 percent live in poverty. That is still too many, and we want to take care of that.
What we do not want to do is go back to the days when 50 percent of our seniors were living in poverty.

Under the President's plan, Social Security benefits would be cut by45 percent. The average yearly payment would be only $5,700, which is 35 percent below the poverty line. That would be a tragic reversal of fortune for our people.

Certainly we know that Social Security needs periodic adjustments.
However, President Bush is misleading the American people by calling this a "crisis." According to the Social Security Trustees, there is enough money to pay full benefits until 2042. And according to the Congressional Budget
Office, there is enough money to pay full benefits until 2052.

Now more than ever -- as we are faced with an aging population, the imminent retirement of the baby boom generation, the costs of the war on terrorism, 40 million Americans without healthcare, and a ballooning budget
deficit of well over $400 billion -- we cannot afford to divert needed funds away from an already stressed Social Security system.

This is too much of a risk to take with funds that so many workers are counting on for their retirement. Privatization would also impact people with disabilities, survivors of deceased workers, and 3 million children who depend on Social Security benefits. I feel strongly that we should not weaken Social Security or compromise its financial condition. Rest assured, I am committed to preserving the
integrity of Social Security for generations to come. And it is not difficult to solve this challenge, just as we did in 1983.

Again, thank you for taking the time to voice your concerns. Please continue to keep me informed about the issues that matter to you.

Sincerely,


Barbara Boxer
United States Senator

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answer--please complete the form at http://boxer.senate.gov/contact/webform.cfm
 

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