Social Security Privatization Proposal Would Hurt Kansas

Press Release

Social Security privatization proposal would hurt Kansans

Report shows plan would cut benefits for over 235,000 in Moore's district

Congressman Dennis Moore (Third District-KS) released a report Monday showing the impact of the Bush Administration's Social Security privatization plan on families in Kansas' Third Congressional District. The report found the majority of wage earners in the district would face steep benefits cuts under the proposed privatization plan.

"Social Security is our promise that we will not abandon people during old age, illness or disability," Moore said. "This report clearly shows our country would risk breaking that promise under the Administration's plan to privatize Social Security. We owe it to ourselves and future generations to keep this commitment."

Specifically the report found:

The Administration's plan would cut benefits for over 235,000 wage earners in Moore's district. There are 328,000 wage earners in the district who are currently contributing to Social Security. The Administration's plan would cut benefits for 72% -- or more than 235,000 -- of these workers.

The Administration's plan would result in significant benefit cuts for individual wage earners in Moore's district. For wage earners between the ages of 35 and 55, the average benefit upon retirement would be $2,640 per year less than under the current formula. For younger wage earners, the average benefit cut would be $5,255 per year. Over 66,000 wage earners in the district would face benefit cuts of over 20%.

The Administration's plan would cut total benefits by over $20 billion for current wage earners in Moore's district. Over their lifetimes, wage earners in the district who are currently contributing to Social Security would lose $20.1 billion in benefits under the Administration's plan. More than 73% of this cut will come from workers who earn between $30,000 and $90,000 annually.

"In addition to the benefit cuts that will hurt Kansans, I'm concerned about the more than $1 trillion estimated cost over 10 years to implement a system of private accounts," Moore said. "With our federal national debt reaching a record $7.8 trillion, our country can't afford to go any deeper in debt."

Moore unveiled the report Monday at Brighton Gardens Assisted Living in Prairie Village where he celebrated the 70th anniversary of President Roosevelt signing the Social Security Act into law on August 14, 1935. The report was prepared by the Minority Staff of the U.S. House Committee on Government Reform.

Source