Following President Bush’s State of the Union address, it is fitting that we take stock of where our nation stands, where we are headed, and the challenges we face. In his address, the President focused on a number of issues of grave importance to our communities from community healthcare centers, to the AIDS/HIV epidemic, to the issue of paramount concern – the privatization of social security.
We, in Congress, have a responsibility to come together in a bi-partisan and bicameral effort to devise the best plan for current and future generations. I am committed to working with my colleagues across the aisle to find common ground where we can, and to stand my ground where we cannot.
As the debate on social security privatization progresses, I want to ensure that you are adequately informed and educated on the drastic changes being proposed to the current system. Below is a comparative of the Rhetoric vs. the Reality of the Administration’s proposed privatization plan, the state of Social Security and private accounts.
Additionally, I am hosting three town hall meetings to answer questions and address any concerns you may have. They’ll be held Saturday, February 26 th at the following Houston Community College Campuses, 9-11am at Willie Lee Gay Hall Campus 1990 West Airport Blvd. at SH 288; 12 noon – 2pm West Loop Campus 5601 West Loop South; and 3-5pm Alief Center 13803 Bissonnet.
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Rhetoric |
Reality |
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In 2018 the benefits being paid out are going to exceed the taxes coming into the system, and then by 2042 the systems going to be bankrupt. |
The non-partisan Congressional Budget Office has stated that the Social Security Trust Fund is running a surplus and will have enough money for another 50 years. Even after 2052, the tax dollars from workers will still be coming in to pay benefits for retirees and will cover 80% of the cost of benefit promised |
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Rhetoric Younger workers who elect personal accounts can expect to receive a far higher rate of return on their money than the current system could ever pay them. |
Reality In this case the proposed plan’s cure is worse than the disease. Under this plan, younger workers would be left with a Social Security benefit 40% lower than they were promised – amounting to a $152,000 cut. |
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Rhetoric Privatization will solve the financial problems facing Social Security and create a greater retirement security for future generations. |
Reality The privatization plan would require draining the current system of more than $2 trillion to initiate private accounts - making the financial situation worse for Social Security. Such massive government borrowing will divert funds from the Trust Fund making it harder to save Social Security; it will also endanger our economy, and increase our debt to foreign nations. |
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Rhetoric Private accounts will ensure that your money will always be there and the government can never take it away. |
Reality Private accounts will put hard earned retirement savings at the mercy of the political process and the unpredictable stock market. Private accounts will take a guaranteed benefit and potentially gamble it away in the stock market. Social Security is too vital to our community to allow it to be subject to such “risky business.” |
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