Interesting. The Post pretty much nails the new Bush plan on the front page of tomorrow's paper: cut pretty much everyone's benefits a lot. The sweetener? Poor people's benefits won't be cut as much!How much is a lot? Check this out:
Let's be clear, by "low income" we're really talking about "low income." Everyone else gets big benefit cuts. Here's the CBPP analysis of the Pozen plan, which is basically what Bush is embracing.And don't forget about what this phase-out plan will do to disability and dependent benefits.
A "medium" earner, one earning $36,507 in 2005, would see benefits cut by 16% in 2045 and 28% in 2075.
A "high" earner, one earning $58,411 in 2005, would see benefits cut by 25% in 2045, and 42% in 2075.
By 2100, basically everyone earning above $20,000 would earn exactly the same benefit, no matter how great their tax contribution was. You think Social Security provides a poor rate of return now? Just wait.
The dependent benefits has been the most ignored aspect of social security during this entire discussion, as the bamboozlers want to pretend that the big tragedy is the person who dies when their children are adults. But, for people who have dependent children, when one spouse (even in many cases divorced spouses) dies, social security really does frequently allow the rest of the family to maintain their current economic status. Cuts in retirement benefits would cut these benefits as well, plunging middle class people into poverty when a parent dies.Less benefits for everyone. Throw more middle class people into poverty. Huge privatization giveaway to Wall Street. Is it any wonder no one supports this plan?
If you keep this up, George, your approval ratings will be in the 30s soon. Don't worry, though, the media whores will still refer to you as a 'popular' president.