Bush Slips Social Security Plan Into Budget
Duffy said privatization costs were included in the midyear budget update that the Office of Management and Budget released last July 30, so it was logical for them to be in the 2007 budget proposals. But I sure didn’t see this coming—and I wonder how many people outside of the White House did.
Nevertheless, it’s here. Unlike Bush’s generalized privatization talk of last year, we’re now talking detailed numbers. On page 321 of the budget proposal, you see the privatization costs: $24.182 billion in fiscal 2010, $57.429 billion in fiscal 2011 and another $630.533 billion for the five years after that, for a seven-year total of $712.144 billion.
In the first year of private accounts, people would be allowed to divert up to 4 percent of their wages covered by Social Security into what Bush called “voluntary private accounts.” The maximum contribution to such accounts would start at $1,100 annually and rise by $100 a year through 2016.
I heard the reporter interviewed on the Rachel Maddow show, and he says that not even Wall Street will “buy into” this scheme. One has to hope. The emperor has no clothes, and its time he’s told…
Update: wapo had Mr. Sloan’s first article. Bush’s Social Security Sleight of Hand