Mar 14, 2005
Musgrave and Bush Won’t Tell Colorado About the Ugly Details of Their Privatization Plan
Mar 14, 2005
Musgrave and Bush Won't Tell Colorado About the Ugly Details of Their Privatization Plan
With President Bush barnstorming the country campaigning for his Social Security privatization plan, GOP Rep. Marilyn Musgrave continues to reiterate her support for the plan, even though it would drastically cut benefits to Colorado's disabled workers who rely on Social Security benefits. While Rep. Musgrave says she does not support a cut in Social Security benefits, she does support President Bush's proposal of private retirement accounts, which experts agree would cut those benefits by up to 40%.
Unfortunately, President Bush and Rep. Musgrave aren't likely to level with Colorado's Social Security beneficiaries about the ugly details of their privatization plan. Among those details is the fact that more than 66,085 disabled Colorado residents are relying on Social Security's disability benefits today and can't afford the cuts in benefits that are part of the Musgrave/Bush plan. [http: //www.ssa.gov/policy/docs/quickfacts/cong_stats/index.html]
Today, Democratic Congressional Campaign Committee Chairman Rahm Emanuel (IL) challenged Bush and Musgrave to come clean about the consequences of their plan and explain how they would protect disabled Coloradoans from benefit cuts.
"Colorado families deserve to know the facts about the Musgrave/Bush privatization plan that adds to Social Security's financial burden while cutting guaranteed benefits, " said DCCC Chairman Rahm Emanuel (IL). "The benefit cuts under the Musgrave/Bush plan would be devastating to the families of more than sixty-six thousand disabled Colorado residents who rely on Social Security today to make ends meet."
Ugly Details of Musgrave/Bush Plan:
What Would Happen to the more than 66,000 in Colorado Who Get Social Security Disability Benefits Under Musgrave/Bush Plan?
In Colorado, 66,085 disabled families received federally administered Social Security disability benefits in December 2003. If the Musgrave/Bush privatization plan is enacted, however, the assistance those families are receiving will drop dramatically. According to the Center on Budget and Policy Priorities, guaranteed benefits under privatization would be cut by 46 percent for many beneficiaries. [CBPP, 1/28/05; <>
Musgrave/Bush Plan Adds $4.5 Trillion to National Debt in First 20 Years
While White House estimates falsely skew the cost of the plan, the actual cost would be much higher than estimated and would add more than $4.9 trillion to the debt over its first 20 years. Over the first ten years that the plan was in effect (2009-18), it would add about $1.4 trillion to the debt. Over the next ten years (2019- 28), it would add about $3.5 trillion more to the debt. All told, the plan would add $4.9 trillion (14 percent of GDP in 2028) to the debt over its first 20 years. [CBPP, "An Overview of Issues Raised by the Administration's Social Security Plan, 2/7/05; <>]>
Musgrave/Bush Plan Does Nothing to Extend Long-Term Solvency of S.S.
Even White House officials acknowledge that the Bush plan will do nothing to restore solvency to Social Security. According to the LA Times, "In a significant shift in his rationale for the accounts, Bush dropped his claim that they would help solve Social Security's fiscal problems -- a link he sometimes made during last year's presidential campaign [LA Times, 2/3/05]>