President Bush took the
country in the wrong direction last year when he tried to privatize Social
Security. Despite widespread public opposition to his plan, and a broadly-held
assumption that privatization is dead, Washington Republicans recently made it
clear that they will continue to push for privatization after this year’s
Congressional elections.
As middle-class life becomes
less affordable and pension plans less reliable, the last thing Americans need
is a Republican scheme to make deep cuts in Social Security benefits and
increase the national debt to finance risky private accounts. Democrats are
committed to a new direction that will strengthen Social Security and retirement
security for all Americans.
WASHINGTON REPUBLICANS NOT GIVING UP ON PRIVATIZATION
As long as Bush is in
power, he will not give up on privatizing Social Security. “I addressed that issue last year, focusing on
Social Security reform…If we can’t get it done this year, I’m going to try next
year. And if we can’t get it done next year, I’m going to try the year after
that.” (President Bush, 6/27/06)
Republicans waiting until
after November elections to resume privatization drive. Because Washington Republicans know that
Social Security privatization is unpopular, they are waiting until after the
elections to pursue their plan in Congress. Rep. Jim McCrery, the Republican
Chairman of the House Ways and Means Subcommittee on Social Security, said, “I’m
hopeful that next year will provide us an opportunity to kind of go back to
square one, start all over and come up with a Social Security plan…We tried that
last year – didn’t get very far…That’s an issue that simply is going to have to
wait until after the elections.” (Gannett News Service, 6/9/06) The Wall
Street Journal reported that White House Chief of Staff Josh Bolten is “looking
ahead to next year… trying to lay the groundwork for a renewed effort to reform
Social Security.” (Wall Street Journal, 6/17/06)
Social Security
privatization will be top priority for Republican Congress in 2007. “I think the
president wants to do tax reform, and I’m certainly ready to help him do tax
reform in ‘07 and ‘08…Looking at the lay of the land politically and
substantively, it seems to me the more logical order would be Social Security,
then tax reform, then healthcare reform.” (Rep. McCrery, CongressDaily, 6/6/06)
REPUBLICAN SNEAK ATTACKS ON SOCIAL SECURITY
Republican sneak attack on
Social Security in the Budget Process Bill.
On June 20, 2006, on a
party-line vote, the Senate Budget Committee approved S. 3521, a Republican
bill to make major changes in federal budget laws. While described by Republican
proponents as a measure to restore fiscal discipline, the legislation actually
represents a sneak attack on Social Security. For example, the Republican
Budget Process bill would create two commissions controlled by Republicans that
could develop fast-tracked recommendations to privatize Social Security, with
little public notice or debate. The bill also would put Social Security back
“on-budget,” allowing Social Security surpluses to be used to mask the true
size of the budget deficit. In addition, the bill would give the President new
line-item veto powers, making it easier for him to eliminate improvements in Social
Security benefits and cut funding to administer the Social Security program,
without an adequate opportunity for public input and a full debate.
Republican sneak attack to
privatize Social Security in the Budget Resolution. Senate Republicans voted earlier this year to pave
the way for private accounts. The overwhelming majority of Senate Republicans voted
for an amendment to this year’s budget resolution that would have established a
reserve fund to facilitate the establishment of privatized accounts in Social
Security. (Roll Call No. 68, 3/16/06, DeMint Amendment No. 3087).
Republican sneak attack to
privatize Social Security in the Mid-Session Review. The Mid-Session Budget Review released by the White
House Office of Management and Budget (OMB) earlier this month included a
proposal that would spend $721 billion – nearly $10 billion more than
originally planned in the President’s original Fiscal Year 2007 budget – to
turn Social Security into a system of private accounts with lower guaranteed
benefits. (Office of Management and Budget, Fiscal Year 2007
Mid-Session Review, 7/11/06)
