June 7, 2011

They just couldn't help themselves, could they?  : “House Republicans Look To Privatize Social Security"

SEE BELOW.    Statement from Tom McMahon, executive director of Americans United for Change – the group formally known as Americans United to Protect Social Security that led the national campaign to defeat President Bush’s effort to privatize Social Security in 2005: “They just couldn’t help themselves, could they?  After already voting to voucherize Medicare and eviscerate Medicaid to pay for trillions of dollars in new tax breaks for millionaires and big oil, House Republicans must have figured ‘Why stop now?’  Now they’re proposing to privatize Social Security and let their friends on Wall Street get their hands on the trust fund – apparently trying to achieve the Triple Crown among conservative ideologues by doing away with the nation’s three most cherished social safety nets that keep millions of seniors, children, survivors and people with disabilities out of poverty.  House Republicans don’t seem to care that the American people already rejected this scheme for turning Social Security’s guaranteed benefits into a guaranteed gamble on Wall Street when President Bush proposed it. They don’t seem to care that the vast majority of Americans are rejecting their proposals for ending Medicare and Medicaid as we know them.  Nothing else seems to matter to House Republicans when it comes to more profits for Wall Street.”

http://tpmdc.talkingpointsmemo.com/2011/06/house-republicans-look-to-privatize-social-security.php

House Republicans Look To Privatize Social Security

Benjy Sarlin | June 7, 2011, 9:26AM

Republican leaders left Social Security untouched in their House budget this year, but a group of GOP lawmakers are looking to fill the gap themselves with legislation that would create a voluntary privatized version of the program.

Introduced by Rep. Pete Sessions (R-TX), who also chairs the House's campaign efforts at the NRCC, the "Savings Account For Every American Act" would allow people to immediately opt out of Social Security in favor of a private "S.A.F.E." account. Eventually the program would expand to let employers send their matching contribution to workers' Social Security to a "S.A.F.E." account as well.

"Our nation's Social Security Trust Fund is depleting at an alarming rate, and failure to implement immediate reforms endangers the ability of Americans to plan for their retirement with the options and certainty they deserve," Sessions said of the plan, according to The Hill. "To simply maintain the status quo would weaken American competitiveness by adding more unsustainable debt and insolvent entitlements to our economy when we can least afford it."

Republicans have been wary of wading back into Social Security privatization after a major push on the issue during President Bush's second term failed to reach a vote in either the House or Senate despite there being a Republican Congress. One Freshman Representative who suggested the federal government could be rolled back to just four departments even listed protecting Social Security from privatization as one of his top causes on the 2010 trail. Among the GOP presidential candidates, Rick Santorum had tried to adopt the cause as part of his platform.

http://thehill.com/blogs/floor-action/house/164947-house-republicans-propose-social-security-opt-out

House Republicans propose Social Security opt-out

By Pete Kasperowicz - 06/06/11 04:25 PM ET

House Republicans on Friday introduced legislation that would allow workers to partially opt out of Social Security immediately, and fully opt out after 15 years.

Rep. Pete Sessions (R-Texas), who chairs the National Republican Congressional Committee, and several other Republicans introduced the Savings Account for Every American (SAFE) Act. Under the bill, workers would immediately have 6.2 percent of their wages sent to a "SAFE" account each year.

That would take the place of the 6.2 percent the workers now contributed to Social Security.

Another 6.2% is sent to Social Security by employers. Under the Sessions bill, employers would continue to make this matching contribution to Social Security, but after 15 years, employers could also send that amount to the employee's SAFE account.

Sessions said this transition to a private retirement savings option is needed because Social Security last year began paying out more money than it took in.

"Our nation's Social Security Trust Fund is depleting at an alarming rate, and failure to implement immediate reforms endangers the ability of Americans to plan for their retirement with the options and certainty they deserve," Sessions said. "To simply maintain the status quo would weaken American competitiveness by adding more unsustainable debt and insolvent entitlements to our economy when we can least afford it."

Under the bill, employees would be able to make tax free contributions to their SAFE account, and take tax-free distributions at retirement age. The bill would also allow employees to stay with the Social Security program if they wish.

Other sponsors of the bill are Reps. Marsha Blackburn (R-Tenn.), Dan Burton (R-Ind.), Randy Neugebauer (R-Texas), Lamar Smith (R-Texas), Lee Terry (R-Neb.) and Jeb Hensarling (R-Texas).

Posted by Kombiz