Departments

Help Still Needed On Social Security

The initial push by President Bush and GOP Congressional leaders to privatize Social Security has fizzled. Public opinion polls show that the voters overwhelmingly oppose privatization proposals that would slash Social Security benefits and hike our national debt.

However, when the House reconvenes in September, the Chairman of the Ways and Means Committee, Representative Bill Thomas (R-Calif.), has vowed to push a "retirement security" package that includes a new privatization scheme advanced by Representatives McCrery (R-La.) and Shaw (R-Fla.) that would use the temporary surpluses that are now coming into Social Security to fund private accounts. There have been indications that Thomas will include tax breaks and other "sweeteners" in this package in an effort to buy votes.

UAW activists need to send a loud, clear message to Representatives to oppose this phony Thomas-McCrery-Shaw Social Security privatization scheme. We need to tell Representatives that this scheme:

· Still Privatizes Social Security. It still establishes private accounts and in return cuts Social Security benefits. This is the essence of privatization!

· Still Cuts Social Security Benefits. Social Security benefits would still be reduced based on the amounts contributed to the private accounts. And because this scheme would divert the temporary surpluses from Social Security, this would weaken the long-term solvency of the program and inevitably force deep benefit cuts for future retirees.

· Still Hikes the National Debt. This scheme would dramatically increase our national debt by about $1 trillion during the first decade alone.

· Fails to Improve the Solvency of Social Security. This scheme does nothing to shore up the long-term financing of the Social Security system. Thus, it shows that the real objective is privatizing Social Security, not strengthening the system for future retirees.

· Still Raids the Social Security Trust Fund. Under this scheme, Social Security funds would continue to be spent by the federal government to pay for other programs. Accordingly, it does nothing to establish a "lock box" for Social Security and to stop the raid on the Trust Fund.

During the month of August, our progressive allies in conjunction with Americans United to Protect Social Security - will be conducting numerous events around the country to generate grass roots pressure on Representatives to oppose the Thomas-McCrery-Shaw privatization scheme.

UAW activists are encouraged to call their Representative on this issue. Thanks in advance for everyone's efforts on this priority issue.