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1/10/2005

More Right Wing Lies About Social Security

Amid all the talk about President Bush manufacturing crisis in order whip up support for various policies, comes word there is a real crisis, but it isn't Social Security.

"In other words, the administration is fabricating a crisis to divert attention from other issues that are potentially much more threatening, such as the cost of Bush’s tax cuts if they are made permanent. As the Center on Budget and Policy Priorities pointed out in recent reports, the cost of the Social Security shortfall over the next 75 years does not come close to the cost of either making the 2001 and 2003 tax cuts permanent or of the newly passed Medicare drug benefit. (See the chart below). Both these policies of President Bush would strain the budget to the breaking point long before Social Security would. As E.J. Dionne pointed out in a Jan. 7 editorial in the Washington Post, many opponents believe, “Bush is proposing a solution that won’t work on an issue that should not be dominating the debate in the first place.”

Further, it is striking that the Bush tax cuts were made possible in the first placed due to the planned build up of Social Security reserves. The federal government is currently borrowing those funds to finance the deficit. In 2018, when the payout of benefits will exceed the revenues in the Social Security program, the government will need to begin paying back what it borrowed from Social Security. Thus, by 2018, the only real crises will be an artificial one created by the Bush tax cuts and the additional borrowing necessitated by them." more

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