Pelosi Decries Middle Class Benefit Cuts
Pelosi Decries Middle Class Benefit CutsNew Data Shows More than 3 Million California Families Would Be Hurt by Bush Proposal
Contact: Brendan Daly/Jennifer Crider, 202-226-7616
Tuesday, May 10, 2005
Washington, D.C. - House Democratic Leader Nancy Pelosi today called for President Bush to tell the truth about his Social Security privatization proposal's impact on middle-class families. Pelosi released new data that shows more than 3 million middle-class families in California could be hit by benefit cuts President Bush proposed last month.
"This is the single largest Social Security benefit cut for the middle class in history. In California, more than 3 million middle-class families would have their Social Security checks reduced if the Bush proposal were in effect today," Pelosi said. "Anyone making more than $20,000 will see their guaranteed benefits cut. The President would cut $259 from the average Californian's monthly Social Security check to pay for his risky plan. Those who establish a private account would get an even larger cut, $675 per month, due to the privatization tax required by the President's proposal," Pelosi said.
Pelosi said that 3,051,195 middle-class families could be impacted by the Bush proposal, based on Social Security Administration data and analysis by the Center on Budget and Policy Priorities. The calculation shows the impact if the President's plan was fully in effect today.
Pelosi said the President's plan would hurt California's economy, because California would lose $777 million in buying power every month, or $9.3 billion a year.
Seventy percent of Americans would be affected by the President's benefit cut proposal, including every single middle-class worker.
"First, we learned that the Bush Social Security privatization proposal would mean benefit cuts and trillions in new debt," Pelosi said. "Now the President is proposing deeper benefit cuts aimed directly at middle-class families, hitting them right in the wallet. Given the huge number of families who will be hurt in California, it's shocking that Republicans continue to push for benefit cuts."