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Welching on Social Security?
The Associated Press

Posted on 02/25/2004 2:40:24 PM PST by Celantro

The Associated Press Updated: 2:06 p.m. ET Feb. 25, 2004

WASHINGTON - Federal Reserve Chairman Alan Greenspan urged Congress on Wednesday to deal with the country’s escalating budget deficit by cutting benefits for future Social Security retirees. Without action, he warned, long-term interest rates would rise, seriously harming the economy.

In testimony before the House Budget Committee, Greenspan said the current deficit situation, with a projected record red ink of $521 billion this year, will worsen dramatically once the baby boom generation starts becoming eligible for Social Security benefits in just four years.

He said the prospect of the retirement of 77 million baby boomers will radically change the mix of people working and paying into the Social Security retirement fund and those drawing benefits from the fund.

“This dramatic demographic change is certain to place enormous demands on our nation’s resources — demands we will almost surely be unable to meet unless action is taken,” Greenspan said. “For a variety of reasons, that action is better taken as soon as possible.”

President Bush said he had not seen Greenspan’s comments, nor spoken to him, and declined to respond directly to a reporter’s question about them.

Bush said that “my position on Social Security benefits is, those benefits should not be changed for people at or near retirement.”

He renewed his call for personal savings accounts for younger workers that he said “would make sure those younger workers receive benefits equal to or greater than that which is expected.” And Bush repeated his promise to cut the deficit in half over five years.

While Greenspan urged urgency, Congress is unlikely to take up the controversial issue of cutting Social Security benefits in an election year.


TOPICS: Business/Economy; Culture/Society; Government; Miscellaneous; News/Current Events
KEYWORDS: socialsecurity
At or near retirement? What does THAT mean? Does it mean 40? 50? 61.5?
1 posted on 02/25/2004 2:40:25 PM PST by Celantro
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To: Celantro
Don't take what others write as truth. You have to listen to the actual person speaking.
2 posted on 02/25/2004 2:43:05 PM PST by pacpam (action=consequence applies in all cases)
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To: Celantro
While Greenspan urged urgency, Congress is unlikely to take up the controversial issue of cutting Social Security benefits in an election year.

I'd love to ask Congress who's going to have a job if immigrants keep flooding the country, and if corporations keep sending all the American jobs to third-world countries?

There is going to come a day of reckoning, but none of us will be around to see it. We will have lost our homes and income to the third world, and we'll be living out our last days in debtor's prison.

3 posted on 02/25/2004 2:47:18 PM PST by swampfox98 (Beyond 2004 - Chaos! 200 million illegals waiting in the wings)
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To: Celantro
those benefits should not be changed for people at or near retirement.”

Um-hmm. That means for those one year older than me, it won't be changed. For my age and younger, it will be "gotcha". That's the way it always works.

4 posted on 02/25/2004 2:49:38 PM PST by neutrino (Oderint dum metuant: Let them hate us, so long as they fear us.)
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To: swampfox98
I love your reply. You think like I do with one exception. The corporations are just trying to survive in the global market too. If cheap goods are available abroad, those abroad will buy from someone other than us. Either we use the cheap labor market or we're cut out of it.
5 posted on 02/25/2004 2:57:20 PM PST by Celantro
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To: Celantro

Who woulda guessed it?
6 posted on 02/25/2004 3:10:20 PM PST by BabaOreally
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To: Celantro
I don't think this will fly exactly as Greenspan proposed. This is just a trial ballon to get the American taxpayer sucker used to paying more and getting less from the socialist insecurity program. What will inevitably happen is "means testing". Benefits will be reduced according to some marxist scheme. For instance, if you draw a certain amount out of your 401K, your SS retirement benefit will be reduced. But the kicker is that this level will be indexed, just like the maximum amount of income that you have to pay FICA payroll taxes on has been indexed.

WAKE UP SHEEPLE. Voting republican will not help. Every pubbie from Eisenhower to Reagan to the Bushies have loved social security. It will take a minor revolution to dump this horrific ponzi scheme.

7 posted on 02/25/2004 3:17:34 PM PST by StockAyatollah
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To: Celantro
Don't forget the white house plan to give social security to illegal aliens. This may have a lot to do with Alan Greenspan's remarks-- it will free up money for the illegals.
8 posted on 02/25/2004 3:19:53 PM PST by hedgetrimmer
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To: Celantro
I see a lot more going on than providing cheap products. I don't trust our government much, and I think they are all - both Democrats and Republicans, are out to destroy the middle class. The middle class is bothersome; they vote and write letters, and they cause trouble for politicians. We usually know what the politicians are up to, and we don't believe their political speeches. That makes them mad.

I just about gag when Kerry goes to a rust bucket state and tells the poor joes there that he will fix the job situation for them once he gets in office. What a joke.

9 posted on 02/25/2004 3:28:46 PM PST by swampfox98 (Beyond 2004 - Chaos! 200 million illegals waiting in the wings)
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To: swampfox98
I don't trust government much either. I loath the democRats and I worry about the Republicans. When Bush says he doesn't want to mess with social security for those "at or near retirement" I figure he means to screw everybody under 60. So, bottom line is that I don't want to lose my guns, I don't want to pay for a welfare state that will never benefit me, and I don't want anyone to confiscate my social security savings. What am I?
10 posted on 02/25/2004 4:11:54 PM PST by Celantro
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To: Celantro
What am I?

You're probably not too popular on FR. Take it from one who knows.

11 posted on 02/25/2004 4:18:18 PM PST by swampfox98 (Beyond 2004 - Chaos! 200 million illegals waiting in the wings)
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To: Celantro
actually...you speak for many of us who are feeling the crunch between a socialist govt. and greedy corporations, and at the same time not being the "favored" race or religion.....

that's it....we'll all become Jews or Muslims and then we can claim discrimination status....

12 posted on 02/25/2004 4:22:15 PM PST by cherry
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To: StockAyatollah
What will inevitably happen is "means testing". Benefits will be reduced according to some marxist scheme.

Don't look now, but means testing has already happened. It started in 1983. It used to be that SS benefits were not taxable. In 1983 50% of benefits were made taxable, and under the 'toon, this percentage was raised to 85%.

This is a means test. If one has no other income, benefits are not taxed due to how the IRS code works. If one has other income, benefits are taxed.

Here in Kali, my marginal rate is ~40% for both state & federal, so my benefits will be reduced by ~34% when I start to draw SS. That is a means test no matter what they call it.

13 posted on 02/25/2004 4:38:20 PM PST by CurlyDave
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