House GOP Propose Own Social Security Plan

[Judi Lynn]

House GOP Propose Own Social Security Plan
House GOP Members Come Up With Their Own Version of Social Security Overhaul

By GLEN JOHNSON Associated Press Writer
The Associated Press

WASHINGTON Jun 30, 2005 — House Republicans, who have watched Democrats stymie President Bush's proposed Social Security overhaul, are marching ahead with a plan of their own. In a bill they expect to vote upon by autumn, House GOP leaders propose to "stop the raid" on surplus Social Security funds by depositing bonds equal to the extra money in private investment accounts linked to workers under age 55.

While the Republicans plan to continue spending the money for at least the next three years on other government programs, tax cuts and even the war in Iraq, they believe their creation of the accounts will put Democrats at a disadvantage. Next year's surplus is estimated at $88 billion.

"This is not too far too fast. … This is a step we can take right now" to modernize Social Security, said Rep. Roy Blunt of Missouri, the third-ranking GOP leader.

Democrats, however, see the proposal as not only more of the same, but worse than what has been proposed by Bush. He has called for diverting a portion of the payroll taxes that currently are used to pay the benefits of existing retirees.
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http://abcnews.go.com/Politics/wireStory?id=894926&CMP=OTC-RSSFeeds0312

[Rainscents]

1. Could someone please do the math on this? I don't buy into any of their

crap... Everything is take away and lies!

[Starbucks Anarchist]

3. I'm a little fuzzy on the math.

However, the Treasury bonds they want you to invest in are also the same pieces of paper Bush referred to as "worthless IOUs."

[merwin]

6. Easy. $0 surplus = $0 bonds. Then they move ahead with privitization.

[Iowa]

2. An even worse version of the same old crap...

They are absolutely consumed by a desire to wreck the SS system. They simply will not let it go. The best thing that could happen to Social Security is for the country to bury these asswipes in 2006.

[sandnsea]

4. It's part good

We really do have to confront the fact that we're borrowing the excess FICA and we have to stop that. In order to stop that, we have to confront the deficit and raise the income taxes. It's just where to put the excess FICA that is the question. If the GOP would stop calling the bonds worthless IOU's, that would be a start.

But this privatization plan still doesn't offer guaranteed income against poverty and that's what Social Security INSURANCE is all about.

[FloridaPat]

5. Their going to let the deficit go up another $88 billion dollars a year?

That would put it around $700 billion when you add all the war expenses that are off the book. The extra money was for the baby boomers. Some of which are under 55. However, by depositing bonds - doesn't the extra money go into government bonds now? I'm betting the money will again go into those same government bonds, but they will set up private accounts and it will cost extra money to mange those accounts. So they get government money to the money managers which is the whole point of privitization. It's a mid-term election plan.

The plan is any change in SS will put them in a position to do the changes they want later. This is more smoke and mirrors.