Most people do not realize that the Republican majority in the House of Representatives voted LAST YEAR to privatize social security … and wouldn’t ya know it passed with a majority in the House. Not one Democrat voted for it; it’s like the Republicans practically get an erection when they’re thinking up ways to cut Social Security and Medicare. You can find the roll call and the text of the bill HERE courtesy of the NY Times:
The only thing stopping this juggernaut from occurring was a Democratic Senate and a Democratic President. Conservatives have opened up their war on what they consider to be “entitlements” while at the same time fighting to make sure the burden on the rich continues to be minimized as much as possible. If given the opportunity – Republicans will try to privatize Social Security and permanently kill the program.
The Center on Budget and Policy Priorities explains what the Republican budget would do to Social Security HERE:
In addition to cutting benefits, Rep. Ryan’s plan would increase payroll taxes by ending the tax exclusion for employer-sponsored health insurance. By themselves, these benefit cuts and the payroll tax increase would be more than sufficient to bring Social Security into financial balance for the next 75 years. However, Rep. Ryan’s plan uses up much of these savings by diverting payroll taxes into private accounts that would impair Social Security’s financial soundness and require transfers from the general fund to assure the program’s solvency.
Although nominally open to all workers, the private accounts would be structured so that only high earners would benefit. The proposal encourages high-wage workers to choose private accounts by making their pay-outs entirely exempt from income taxation, while most of their Social Security benefits would continue to be subject to tax. The Ryan plan would also make the Social Security trust funds responsible for guaranteeing that individuals who opted for private accounts would get back at least as much as they contributed, plus an adjustment for inflation. This guarantee could require Social Security to bail out private accounts when the stock market performed poorly.
Rep. Ryan’s plan would thereby turn Social Security into a two-track system and undermine its broad base of support. Higher earners would choose private accounts. Lower earners would remain in Social Security. The Congressional Budget Office projects that 95 percent of college graduates would ultimately opt for private accounts, but only 5 percent of those who never attended college
So despite the fact that privatization was unnecessary – they continue to push for this. Frankly – I can’t think of a better idea than to have future senior’s entire nest egg invested in the stock market for Wall Street to nurture and care after </sarcasm>.
As we have shown HERE - Paul Ryan tried to privatize Social Security in 2005 and a majority of Republicans supported this plan. My summary of that plan:
Paul Ryan was one of two people to sponsor the privatization of Social Security in the failed attempt under the Bush administration. It would have a hidden tax on middle class workers and by forcing the SSA Trustees to invest in stocks …. anyone who owned stocks would see HUGE windfalls in their wealth.
Feel free to watch the video in the link but that bill was dastardly and it wasn’t unintentional. It was written with an evil genius and sold to Americans as if it supports “choice” and who could possibly be against choice after all. Right? And it is important to note that Paul Ryan still holds that view today and so do the vast majority of Republicans. In fact – not only did Paul Ryan co-sponsor the bill to privatize Social Security – 46 Republicans in the House co-sponsored that legislation (source).
And all of that while the Social Security trust fund has a 2.7 TRILLION surplus (source). Now with the huge baby boom generation retiring – this is having an impact on the future of the program but with a few tweaks – the program will be good for another century. Social Security will be fine as long as our politicians are willing to take action to make it fine. And if they take no action … the program would still be solvent 100% until 2033 and then would pay out at 75% for the next 75 years even under the worst case scenario. So Social Security isn’t going anywhere unless conservatives can convince Americans that it is going bankrupt which is not true.
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