Reid And Schumer Miscalculate Social Security Problem

REID AND SCHUMER MISCALCULATE
SOCIAL SECURITY PROBLEM
You Can’t Count On The Senators’ Faulty, Liberal
Calculations, Or Trust Their Social Security Record

"Senators Reid and Schumer have no credibility when it comes to Social Security. Not even their newfound calculator designed by a Democrat operative can hide the fact that both Reid and Schumer have voted to raise taxes on Social Security recipients. As someone who was previously for personal accounts but is now against them, it's clear that Senator Reid’s record on Social Security is as questionable as his new ‘calculations."’
-Brian Jones, RNC Communications Director

SENS. HARRY REID (D-NV) AND CHUCK SCHUMER (D-NY) USE CALCULATIONS OF LIBERAL "EXPERT"

Reid/Schumer Social Security Calculator: "Thanks To Jason Furman Of The Center On Budget And Policy Priorities For The Underlying Calculations." (Sen. Harry Reid Website, "How The Social Security Calculator Works," http://reid.senate.gov/ss/images/ss-calculator_assumptions.pdf, Accessed 2/17/05)

Former Kerry Campaign Operative Jason Furman’s Calculation Of Effects Of President’s Social Security Plan Frequently Cited By Democrats. Jason Furman, now at the "the liberal think tank Center on Budget and Policy Priorities," has worked for President Clinton, Vice President Gore, General Wesley Clark, and was Director Of Economic Policy for the John Kerry campaign. (David Wessel, "Some Bush-Style Social Security Scenarios," The Wall Street Journal, 2/17/05; Tamara Lytle, "Reforming Retirement System Poses Pitfalls," Orlando Sentinel, 2/3/05; Kerry Campaign, "John Kerry Announces All-Star Additions To Campaign Leadership Team," Press Release, 4/16/04; "Brookings Briefing: The 2004 Campaign; Assessing The Merits And Costs Of The Candidates’ Domestic Agendas," Brookings Institute, 6/23/04)

Furman Was Recently Quoted In Misleading Washington Post Article On Social Security "Clawbacks" That Later Had To Be Corrected. (Jonathan Weisman, "Participants Would Forfeit Part of Accounts’ Profits," The Washington Post, 2/3/05)

FOUR MAIN PROBLEMS WITH REID/SCHUMER/DEMOCRAT OPERATIVE JASON FURMAN’S CALCULATIONS

#1. Democrats Assume That Current Social Security Systems Can Pay Promised Benefits, But, In Fact, Benefits Would Be Cut 27 Percent By 2042 If Nothing Is Done. (Social Security Administration Website, "Frequently Asked Questions About Social Security," http://www.ssa.gov/qa.htm, Accessed 1/12/05)

#2. Democrats Assumes Final Plan Will Include Price-Indexing When Price Indexing Is Not In Plan President Laid Out In State Of The Union Address. ("Strengthening Social Security For The 21st Century," The White House, 2/05)

#3. Democrats Do Not Account For Investment Gains. (David C. John and Keith Miller, "Would Social Security Reform Lead To A 40 Percent Cut In Benefits?" The Heritage Foundation, 2/4/05)

The Washington Post: "Personal Accounts Would Boost Benefits For The Average Retiree" Because Real Rate Of Return Is Expected To Be 4.6 Percent. (Editorial, "Mr. Bush’s Personal Accounts," The Washington Post, 2/11/05)
#4. Democrats Make Up "Privatization Tax" - President’s Plan Merely Prevents "Double-Dipping" By Allowing Workers Portion Of Traditional Benefits If They Choose PRAs. President Bush’s plan "would require those who opt for a personal account to forgo some of their regular benefits. It’s simply a trade-off - and it’s necessary to prevent double-dipping by both having a personal account and drawing full benefits." (Donald Luskin, Op-Ed, "An Off-Track Rowback Of The Clawback," National Review Online, 2/7/05)
REID AND SCHUMER HAVE BOTH VOTED FOR HIGHER TAXES ON SOCIAL SECURITY BENEFITS
Reid’s Social Security Record -- Voted For Higher Taxes On Social Security Benefits At Least Eight Times:
Reid Voted Twice For Clinton’s Billion Tax Hike On Social Security Benefits. (H.R. 2264, CQ Vote #190: Passed 50-49: R 0-43; D 49-6, With Vice President Al Gore Casting A Yea Vote, 6/25/93, Reid Voted Yea; H.R. 2264, CQ Vote #247: Adopted 51-50: R 0-44; D 50-6, With Vice President Al Gore Casting A Yea Vote, 8/6/93, Reid Voted Yea)
Reid Voted Three Times To Keep Hike In Clinton Plan. (S. Con. Res. 18, CQ Vote #57: Motion Agreed To 52-47: R 0-43; D 52-4, 3/24/93, Reid Voted Yea; S. Con. Res. 18, CQ Vote #59: Motion Agreed To 55-44: R 0-43; D 55-1, 3/24/93, Reid Voted Yea; S. 1134, CQ Vote #169: Motion Agreed To 51-46: R 1-41; D 50-5, 6/24/93, Reid Voted Yea)
Reid Voted Three Times Against Repealing 1993 Increase. (S. Con. Res. 57, CQ Vote #142: Adopted 50-48: R 49-4; D 1-44, 5/22/96, Reid Voted Nay; H.R. 8, CQ Vote #188: Adopted 58-41: R 54-1; D 4-40, 7/13/00, Reid Voted Nay; S. Con. Res. 23, CQ Vote #94: Rejected 48-51: R 48-3; D 0-47; I 0-1, 3/25/03, Reid Voted Nay)
Schumer’s Social Security Record -- Voted For Higher Taxes On Social Security Benefits At Least Four Times:
Schumer Voted Twice For Clinton’s 1993 Tax Hike. (H.R. 2264, CQ Vote #406: Adopted 218-216: R 0-175; D 217-41; I 1-0, 8/5/93, Schumer Voted Yea; H.R. 2264, CQ Vote #199: Passed 219-213: R 0-175; D 218-38; I 1-0, 5/27/93, Schumer Voted Yea)
Schumer Voted Two Times Against Repealing 1993 Increase. (H.R. 8, CQ Vote #188: Adopted 58-41: R 54-1; D 4-40, 7/13/00, Schumer Voted Nay; S. Con. Res. 23, CQ Vote #94: Rejected 48-51: R 48-3; D 0-47; I 0-1, 3/25/03, Schumer Voted Nay)
REID FLIP FLOPPED ON PERSONAL RETIREMENT ACCOUNTS
Reid Then:
Reid: "[M]ost Of Us Have No Problem With Taking A Small Amount Of The Social Security Proceeds And Putting It Into The Private Sector." (Fox’s "Fox News Sunday," 2/14/99)
Fox’s Tony Snow: "Are You Opposed To Letting People Make The Investment Decisions? In Other Words, Having Some Component Where They Say, ‘I’ll Save The Money Rather Than Letting Uncle Sam Do It For Me.’" Reid: "I Think It’s Important That We Look And I’m Totally In Favor Of Do This And In Fact, There Are A Couple Of Programs Now That We’re Taking A Look At To See If It Will Work With Social Security." (Fox’s "News Sunday," 2/14/99)
Reid: "We’re Visiting Chile Because It Is Doing Interesting Things In Social Security And Other Parts Of Its Free Market System." (Tony Batt, "Reid To Embark On South America Trip," Las Vegas Review-Journal, 3/30/99)
Reid Now:
Reid: "We Won’t Hesitate To Tell America Why The President’s Plan On Social Security Is So Dangerous." (CBS’ "The Saturday Early Show," 2/12/05)
Reid: "I Am Especially Concerned By President Bush’s Proposal To Move Toward The Privatization Of Social Security." (Sen. Harry Reid, "Social Security And African Americans," Press Release, 2/4/05)
SCHUMER RECENTLY ADMITTED SOCIAL SECURITY HAS PROBLEMS
Schumer Admitted There Is A Problem With Current System Or That It Needs To Changed. Federal Reserve Chairman Alan Greenspan: "My judgment is we’ve got a problem in, that the existing pay-as-you-go system is not working and we have to change it." Sen. Charles Schumer: "[N]obody disputes that." (Federal Reserve Chairman Alan Greenspan, Committee On Banking, Housing, And Urban Affairs, U.S. Senate, Testimony, 2/16/05)