Congressman Neal Strongly Opposed to Bush Plan to Privatize Social Security

CONGRESSMAN NEAL STRONGLY OPPOSED TO BUSH PLAN
TO PRIVATIZE SOCIAL SECURITY

Will not support proposed cuts to guaranteed benefits

FOR IMMEDIATE RELEASE

January 11, 2005

CONTACT: William Tranghese (202) 225-5601

(WASHINGTON, DC) Congressman Richard E. Neal (D-Massachusetts), a senior member of the House Ways and Means Committee, made the following statement in response to President Bush's announcement today that he will make Social Security privatization one of his top domestic priorities in the 109th Congress.
This morning, the White House held a forum in an attempt to build public support for their plan that may include cutting Social Security benefits by 40 percent in the coming decades.

"If the Bush Administration's proposal to cut Social Security benefits by more than 40 percent were in place today, seniors in Massachusetts would see their monthly benefits drop by an average of $391, making their annual benefit only $5,508. For many retirees who depend on Social Security to make ends meet, that's unacceptable."

"President Bush is manufacturing a crisis by suggesting that Social Security is in imminent danger. It is not. The Social Security Trust Fund will be solvent for almost 40 years. At the end of 2005, the Trust Fund is expected to have a $2 trillion surplus. And in 2040, the Trust Fund is still expected to have a $2 trillion surplus. Simply put, there is no crisis in Social Security."

"Under the Bush plan, Social Security gets weaker, not stronger. Today's workers would see their Social Security benefits drop significantly over the coming years, and the false promise of private accounts is a recipe for disaster."

"We can preserve Social Security benefits for generations of Americans without privatizing this important program. Instead of cutting benefits, we should protect the only secure source of retirement income for many senior citizens," said Neal.

http://www.house.gov/neal/news/news47.html