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Greetings,President Bush has released more details about how his plan to privatize Social Security would work. It is now clear that his plan would make deep cuts in Social Security benefits for everyone earning more than $20,000 a year affecting 70 percent or more of all future retirees.

Specifically, Bush's privatization proposal would slash Social Security benefits for all middle and higher income workers by switching from wage to price indexing in the way benefits are calculated. In addition, Bush's proposal would also impose a privatization tax on all workers who elect private accounts, reducing their Social Security benefits by an additional amount equal to the monies contributed to their private account plus interest. The net result of this double whammy is that most workers would see an enormous reduction in their Social Security benefits.

In addition to these huge benefit cuts, Bush’s privatization proposal would move up the date Social Security faces a shortfall by 11 years. And it would force the federal government to borrow nearly $5 trillion over the next 20 years, saddling future generations with higher taxes and interest rates.

In June and July, House and Senate committees may begin marking up legislation to implement President Bush’s plan to privatize Social Security. To stop this dangerous proposal, UAW members need to send a loud, clear message to representatives and senators that we want them to reject Bush’s plan to make deep cuts in Social Security benefits.

In addition, many members of Congress will be back home in their districts and states during the upcoming Memorial Day recess (May 28 - June 5). This is an ideal time to contact and meet with them on this priority issue. Progressive groups opposed to Bush's privatization proposal will be organizing town hall meetings and other activities in many target districts and states during this period. It is especially important that we put maximum grassroots pressure on Republican senators and representatives who sit on the Senate Finance and House Ways and Means Committees, which will be marking up Bush s privatization proposal. This includes the following members:
Senate Finance Committee:
Grassley (Iowa)
Hatch (Utah)
Lott (Miss.)
Snowe (Maine)
Kyl (Ariz.)
Thomas (Wy.)
Santorum (Pa.)
Frist (Tenn.)
Smith (Ore.)
Bunning (Ky.)
Crapo (Idaho)
House Ways and Means Committee:
Thomas (Calif.)
Shaw (Fla.)
Johnson, Nancy (Conn.)
Herger (Calif.)
McCrery (La.)
Camp (Mich.)
Ramstad (Minn.)
Nussle (Iowa)
Johnson, Sam (Tex.)
English (Pa.)
Hayworth (Ariz.)
Weller (Ill.)
Hulshof (Mo.)
Lewis, Ron (Ky.)
Foley (Fla.)
Brady, Kevin (Tex.)
Reynolds (N.Y.)
Ryan, Paul (Wis.)
Cantor (Va.)
Linder (Ga.)
Beauprez (Col.)
Hart (Pa.)
Chocola (Ind.)
Nunes (Calif.)

To find out more about Social Security and privatization, visit the UAW web site at: http://www.uaw.org/socsec/

Thanks for all your efforts to protect Social Security.