NYT: In Bush's Plan, Social Security Changes Focus (Make Irrelevant to MC) [View All]

[RamboLiberal]

http://www.nytimes.com/2005/05/01/politics/01social.html?ei=5094&en=fe8d620a0f24f813&hp=&ex=1114920000&partner=homepage&pagewanted=print&position=

In attempting to fix Social Security's long-term problems without raising taxes, President Bush has chosen to recast the 70-year-old retirement program as one that would keep the lowest-income workers out of poverty but become increasingly irrelevant to the middle class and the affluent.

Under Mr. Bush's approach of "progressive indexation," a typical low-income worker who earns about $16,000 a year today would be entitled to retirement benefits equal to about 49 percent of his or her wages, the same amount that is promised today.

But those earning an average income, about $36,500 in today's dollars, would see big changes. Instead of replacing 36 percent of that person's working pay, as promised under today's system, benefits would cover only 26 percent of pay by 2075. And people who earn $90,000 a year in today's dollars would continue to pay as much as ever in taxes but would receive benefits equal to only 12 percent of their pay.

From the beginning, Mr. Bush has adamantly opposed alternative plans that would restore Social Security's solvency by raising taxes. While Mr. Bush has not ruled out an increase in the ceiling on income that is subject to payroll taxes, now $90,000, the idea is anathema to him and most Republicans.

Pay attention Middle Class - He's going to irrelevant you back to poverty.

Here's a great visual of current system compared to *'s cuts from the WP to email and give to those you know - especially * voters. Maybe they can understand pictures.

http://www.washingtonpost.com/wp-dyn/content/graphic/2005/04/30/GR2005043000201.html