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Skriven 2005-06-02 23:33:06 av Whitehouse Press (1:3634/12.0)
Ärende: Press Release (0506028) for Thu, 2005 Jun 2
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Fact Sheet: Strengthening Social Security for Rural America
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For Immediate Release
Office of the Press Secretary
June 2, 2005

Fact Sheet: Strengthening Social Security for Rural America



Today's Presidential Action

Today, The President Visited Hopkinsville, Kentucky, Where He Discussed The
Importance Of Social Security Reform For Rural America. President Bush
stressed the need to reform Social Security to ensure its fundamental
promise is kept and no American who works a full lifetime retires into
poverty.

Background: Strengthening The Social Security Safety Net For Rural America

Low-Wage Rural Workers And Farmers Need Social Security Reform That Offers
Higher Rates Of Return, Ownership, And Inheritability.

  þ Social Security Reform Should Protect Farmers. Many farmers are
    self-employed small-business owners who are responsible for both the
    employer and employee portions of the 12.4 percent payroll tax.
    Increasing the payroll tax rate in a misguided effort to fix the Social
    Security system would hit them the hardest.

  þ Farmers Will Benefit From The Inheritability Of Voluntary Personal
    Retirement Accounts. Because many farms are family owned and operated,
    voluntary personal retirement accounts will be of special benefit to
    farmers and their families. Unlike current Social Security benefits,
    voluntary personal retirement accounts within the Social Security
    system are inheritable. So if someone passes away with money left in a
    personal account, that money can go to that individual's spouse or
    children, which will help keep the farm running and keep control within
    the family.

The President's Proposal Will Protect Future Generations Who Depend On
Social Security The Most And Will Provide Higher Benefits Than The Current
System Can Afford To Pay.

  þ Tomorrow's Seniors Will Get More Than Today's Seniors Receive. Under
    the President's Social Security proposal, future benefits will continue
    to grow. The benefits of low- and middle-income retirees will grow
    faster than inflation while the benefits of the highest-income retirees
    will grow no faster than the rate of inflation.

  þ Doing Nothing Means Lower Benefits For Low-Income Workers. By adopting
    progressive indexing and allowing young workers to create voluntary
    personal retirement accounts within the Social Security system, the
    President's plan provides younger workers with real money instead of
    the current system's empty promises. Without Social Security reform,
    benefits for younger workers will have to be cut 30 percent
    across-the-board.

  þ Progressive Indexing Offers Greater Benefits To Those Most In Need. A
    progressive indexing approach, such as Robert Pozen's, would give a
    low-income 20-year-old who retires in 2050 annual benefits of $12,900,
    or $3,500 more than the current system can pay. A middle-income
    20-year-old would get $17,300 under Pozen's approach, or $1,800 more
    than the current system can pay. These figures exclude income from
    voluntary personal retirement accounts. Expected benefits for account
    holders would be even higher.

  þ Voluntary Personal Retirement Accounts Offer Low-Wage Americans Higher
    Rates Of Return. With a voluntary personal retirement account, a
    21-year old single mom earning eight dollars an hour over her lifetime
    could build a nest egg of more than $100,000 when she retires. This is
    in addition to the traditional Social Security benefit she will
    receive. Besides a no-risk option of investing in U.S. Treasury bonds,
    the accounts could be invested only in secure bond and stock-index
    funds, including a life-cycle fund designed to protect workers from
    sudden market changes on the eve of their retirement.

  þ Progressive Indexing Would Put Social Security On The Path To Fiscal
    Balance. By adjusting how benefits are calculated, progressive indexing
    would eliminate nearly 70 percent of Social Security's shortfalls.

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