WASHINGTON -- Today, Congressman
James L. Oberstar rejected the Bush Administration's proposal for
deep cuts in Social Security benefits for American workers.
According to news reports, that plan will link Social Security
retirement benefits to inflation, rather than to the rise in wages
over a worker's lifetime. The result would be a 40 percent cut in
benefits for those who are currently in the workforce.
"President Bush is preparing to
unveil the centerpiece of his plan to dismantle Social Security -- a
radical proposal which would cut benefits by more than 40 percent in
the coming decades," said Oberstar. "This proposal is a terrible
message to send to workers in Northern Minnesota who have
contributed to Social Security for many years and are counting on
receiving the retirement benefits they have earned."
News reports indicate that the
Bush Administration is committed to changing the way Social Security
benefits are calculated, resulting in drastic benefit cuts for
American workers in years to come. Social Security benefits
currently equal 42 percent of the earnings of an average worker who
retires at age 65. Under the new formula proposed by Republicans,
that benefit would fall to 20 percent of pre-retirement earnings.
Republicans have also proposed
privatizing Social Security, essentially diverting more than $2
trillion from the Social Security Trust Fund. Instead of making
Social Security more likely to pay workers the benefits they were
promised, it actually makes funding shortfalls and benefit cuts more
likely.
"Under the Republican plan, Social
Security gets weaker, not stronger," Oberstar said. "Instead of
cutting benefits, we should protect the only secure source of
retirement funding for American workers. That is why Democrats are
working to reduce the deficit, protect Social Security, strengthen
investment vehicles such as 401 (k)s and IRA plans, and provide
clear and unbiased information on retirement investment options."
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