Dean Baker: McCain Would Privatize Social Security [View All]

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TUESDAY 16 SEPTEMBER 2008


Truthout Original

McCain Would Privatize Social Security
Monday 15 September 2008

by: Dean Baker, t r u t h o u t | Perspective



The Republicans have already turned to sick sexual innuendo and nonsense about their vice-presidential candidate, pigs and lipstick in order to distract the public from the real issues in this campaign. One of the items that should be on top of the list of real issues is Senator McCain's plans to privatize and cut Social Security.

McCain has repeatedly expressed interest in privatizing Social Security along the lines proposed by President Bush. For those who have forgotten that nightmare, Bush's plan would have reduced benefits by approximately one percent a year for many workers.

Workers who retired 10 years after the plan was put in place would see a 10 percent reduction in benefits compared with the currently projected levels. Workers who retired 20 years after the plan was implemented would see approximately a 20 percent cut in benefits and workers who retired 40 years after the plan started would see their benefits cut by close to 40 percent.

This schedule of cuts would apply to workers who earn $100,000 a year. Workers who earn $60,000 a year would see cuts of about half this size.

The losses to retired workers could mean big benefits for the financial industry. Under some versions of the plan, the financial industry would rake in hundreds of billions of dollars in fees and commissions over the next 40 years. ......(more)

The complete piece is at: http://www.truthout.org/article/mccain-would-privatize-social-security