"cut social security benefits in the coming decades."

[rodeodance]

The WP fronts word that the Bush administration is close to coming out with a specific plan to cut social security benefits in the coming decades. According to "several Republicans close to the White House," the administration will propose changing the formula that sets initial Social Security benefit levels, a move that could cut benefits by a third by mid-century. "This is going to be very much like sticking your hand in a wasp nest," said a conservative Social Security analyst who nevertheless supports the move. "And the reaction will be similar." So what's the headline for this hot item? "SOCIAL SECURITY FORMULA WEIGHED."

http://slate.msn.com/id/2111727/

and here is the article:

http://www.washingtonpost.com/wp-dyn/articles/A45726-2005Jan3.html

Social Security Formula Weighed
Bush Plan Likely to Cut Initial Benefits

By Jonathan Weisman and Mike Allen
Washington Post Staff Writers
Tuesday, January 4, 2005; Page A01


The Bush administration has signaled that it will propose changing the formula that sets initial Social Security benefit levels, cutting promised benefits by nearly a third in the coming decades, according to several Republicans close to the White House.

Under the proposal, the first-year benefits for retirees would be calculated using inflation rates rather than the rise in wages over a worker's lifetime. Because wages tend to rise considerably faster than inflation, the new formula would stunt the growth of benefits, slowly at first but more quickly by the middle of the century. The White House hopes that some, if not all, of those benefit cuts would be made up by gains in newly created personal investment accounts that would harness returns on stocks and bonds.

But by embracing "price indexing," the president would for the first time detail the painful costs involved in closing the gap between the Social Security benefits promised to future retirees and the taxes available to fund them. In late February or March, the administration plans to produce its proposed overhaul of the system, including creation of personal investment accounts and the new benefit calculation.

"This is going to be very much like sticking your hand in a wasp nest," said David C. John, a Social Security analyst at the conservative Heritage Foundation and an ally of the president. "And the reaction will be similar.".

[Vitruvius]

1. Wage figures are tough to rig; but Rethugs routinely rig inflation figures

because it's so easy. The standard of living of ordinary Americans has been going down-down-down for 30 years, but the "official" figures show inflation rising slower than wages. The fraud is obvious.

Note also: even the rigged official figures show that inflation in the BASICS rises far faster than wages. Why? Because people HAVE to have the basics -- shelter, food, clothing, transportation (including gasoline), a telephone, etc -- so it's easy to gouge on the basics.

In addition, inflation on medical care FAR outstrips inflation.

And what do seniors buy -- with their limited income? The basics, plus medical care. That's about it.

So Bu$h & co. indexing Social Security benefits to "inflation" means we'll get to eat dogfood in our old age and skip medical care if we want to see a roof over our heads.

[indepat]

2. Wonder what the negative rate of return will be for future retirees on

their social security payroll taxes which had been subject to income taxes up front? Another multi-trillion dollar scam foisted on we the people who clamored for four more years, four more years. We the people get the government we so richly deserve when returning any incumbant to office. Let there be no whining, complaining, bemoaning our fate.