Report Shows Social Security Privatization Hurts Mainers
More than 171,000 Workers in Maine's Second District Would Face Benefit Cuts
According to a new report requested by Congressman Michael Michaud, President Bush's plan to privatize Social Security would result in massive benefit cuts for the majority of beneficiaries in Maine's Second Congressional District. The report, compiled by the staff of the Special Investigation Division of the Committee on Government Reform in the U.S. House of Representatives, concluded that privatization would result in more than $10.3 billion in lifetime benefit cuts for Maine workers.
"This analysis shows that the Administration's plan to privatize Social Security would hurt Maine's working families," said Michaud. "Maine workers young and old will face benefit cuts because there is no getting around the fact that privatization takes money away from the system and reduces guaranteed benefits."
The report found that 62% of the 275,000 workers contributing to Social Security in Maine's Second District would face a significant benefit cut if the President's plan were adopted. Workers between the ages of 35 and 55 would experience average benefit cuts of $1,225 per year, while workers younger than 35 would lose an average of $2,770 annually. Approximately 71% of these cuts would come from middle-class Mainers.
The report, titled The Impact of President Bush's Social Security Proposal in Maine's 2nd Congressional District, can be viewed at http://michaud.house.gov.