Lowey News Conference Shows Bush Social Security Plan Will Cost 18th Congressional District Over $18 Billion

For months, President George W. Bush has been pushing his proposals to partially privatize Social Security while cutting guaranteed benefits. Yet, little information has been available on the impact these plans will have on local residents.

Members of the Westchester/Putnam Central Labor Body joined Congresswoman Nita Lowey as she released a report she commissioned from the House Government Reform Committee detailing the effects Bush's Plan will have oh residents of the 18th Congressional District.

"This report makes it crystal clear that President Bush's proposals will have a huge, negative impact on millions of Americans including hundreds of thousands here in Westchester and Rockland," said Lowey. "This is a powerful argument against the partial privatization proposals that have been pushed by the Administration."

In recent months, President Bush has outlined two components of his plans to dismantle Social Security as we know it. He would partially privatize the program by diverting Social Security taxes into individual private accounts, and he would cut guaranteed benefits by at least partially tying benefit increases for most beneficiaries to consumer prices rather than wages.

The effects of these proposals for residents of Westchester and Rockland are addressed in Lowey's report. The findings show the plan would:

. Cut benefits for over 200,000 wage earners in the 18th Congressional District;
. Result in significant benefit cuts for individual wage earners. For wage earners between 35-55, the average cut would be $3,500 a year; for those under 35, it would be $7,715;
. Cut total benefits by $18 billion for residents of the 18th Congressional District; and
. Endanger benefits for widows and surviving children.