Bush Social Security Investment Accounts Will Cut Benefits Without Solving the Problem
"After Democrats said Bush was planning to reduce benefits, the president's aides declared that a drop in promised benefits should not be described as a benefit cut, further fueling charges Bush will slice benefits.
Then, a White House memo leaked this week confirmed the president is seriously considering the benefit cut.
The memo by Bush aide Peter Wehner said, "We're going to take a very close look at changing the way benefits are calculated." To gain support for private accounts and changing benefits, it also advised Bush to portray Social Security as "heading for an iceberg."
... White House officials also have been fending off proposals from some Republicans who believe that allowing larger private accounts will negate the need for a cut in benefits. For example, while a proposal from Bush's Social Security commission calls for private accounts with a maximum annual allocation of $1,000 along with cuts in benefits for younger workers, Sununu has proposed a plan that allows as much as $5,000 in annual contributions to private accounts and no cut in benefits.
Wehner, an aide to Bush adviser Karl Rove... [said] "We simply cannot solve the Social Security problem with personal retirement accounts alone.""
- posted by geoff @ #