Thursday, February 03, 2005

Bush's "plan" for Social Security is a con job.

GratisNet: "From today's Washington Post:

Under the system, the gains may be minimal. The Social Security Administration, in projecting benefits under a partially privatized system, assumes a 4.6 percent rate of return above inflation. The Congressional Budget Office, Capitol Hill's official scorekeeper, assumes 3.3 percent gains.

If a worker sets aside $1,000 a year for 40 years, and earns 4 percent annually on investments, the account would grow to $99,800 in today's dollars, but the government would keep $78,700 or about 80 percent of the account. The remainder, $21,100, would be the worker's.

With a 4.6 percent average gain over inflation, the government keeps more than 70 percent. With the CBO's 3.3 percent rate, the worker is left with nothing but the guaranteed benefit.


So there you have it. You save and Bush takes for unlike the real deal of FDR's Social Security where barring your demise, you receive every penny you paid into the system, in the example above not only will you get screwed out of the rate of return on your savings, Bush's plan also takes 47.25% of the money that you had withheld. That isn't the government's money (to borrow a favorite GOPig phrase), it's your money.

How do you like them apples? Tell me again how Bush and his gang of thugs are looking out for the average American."

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