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Ryan Denounces GOP Proposal to Cut Social Security
WASHINGTON One day into his sophomore term, U.S. Rep. Tim Ryan, D-17 Ohio, blasted the Bush Administration's proposal to cut future Social Security benefits for current workers. "The Bush Administration is preparing to unveil a Social Security privatization scheme that slashes seniors' benefits more than 40%," Ryan said earlier today. "Besides being terrible public policy, such a decision is morally bankrupt -- breaking a promise to the workers in the 17th District and throughout the nation who have contributed to Social Security for years and are counting on receiving the retirement benefits they have earned."Ryan cited news reports that revealed President Bush's plan would link Social Security retirement benefits to inflation rather than to the rise in wages over a worker's lifetime, which would benefits for today's workers by 40%, he said. This is the equivalent of forcing seniors today to live at a 1940s standard of living, the congressman explained.A report in yesterday's Washington Post said the Bush Administration is committed to changing the way Social Security benefits are calculated, resulting in drastic benefit cuts for American workers in years to come.Social Security benefits currently equal 42% of the earnings of an average worker retiring at 65. Under the new formula proposed by Republicans, that benefit would fall to 20% of pre-retirement earnings."The Republican privatization scheme would dismantle one of the most successful and efficient programs America has ever produced," Ryan said. "Ninety-nine percent of Social Security's revenues are paid out in benefits, while just 1% goes toward the program's administrative costs. Instead of investing Americans' earnings in a system that is efficient and secure, the president and Republican Party would have senior citizens risk investing our savings in future Enron's and WorldCom's -- all so that Wall Street big shots could make a windfall charging seniors large investment fees."Ryan also expressed concern for those who might make poor investment decisions. "What will we do with those individuals who lose their life savings right before they retire," he asked, "perhaps through no fault of their own? Instead of cutting benefits, we should protect the only secure source of retirement funding that American workers have.""