WASHINGTON (July 6, 2005) - In a report prepared by the United States House of Representatives’ Committee on Government Reform – Minority Staff, Congressman Bobby L. Rush announced today the impact of President Bush’s Social Security proposal on working families in Illinois’ 1st Congressional District. The report finds that the majority of wage earners in the district will face steep benefit cuts under the President’s plan.
Congressman Rush requested the study after hearing constituent concerns during a townhall meeting on proposed changes to Social Security earlier this year.
“The idea of privatizing Social Security continues to generate a great deal of debate in this nation, so I wanted an in-depth study on the impact that it would have in my district,” said Rush. “With figures that indicate that more than 68% of constituents in the 1st Congressional District would have benefits cut, this disturbing projection not only validates our worst fears, it solidifies my objection to privatization.”
Specifically, the report finds:
The President’s plan would cut benefits for over 160,000 wage earners in Rep. Rush’s District. There are over 245,000 wage earners in the district who are currently contributing to Social Security. The President’s plan would cut benefits for 68% - or more than 166,000 – of these employees.
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The President’s plan would result in significant benefit cuts for individual wage earners in Rep. Rush’s district. For wage earners between the ages of 35 and 55, the average benefit cut would be $1,8750 per year. For younger wage earners, the average benefit cut would be $4,245 per year. Over 39,000 wage earners in the district would face benefit cuts of over 20%.
- The President’s plan would cut total benefits by over $12 billion for current wage earners in Rep. Rush’s district. Over their lifetimes, wage earners in the district who are currently contributing to Social Security would lose $12.8 billion in benefits under the President’s plan. More than 78% of this cut will come from middle-class workers who earn between $30,000 and $90,000 annually.
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Congressman Rush releases report that shows negative impact of privatization in his 1st CD/page 2
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The President’s plan could also cut benefits for widows and surviving children in Rep. Rush’s District. Social Security benefits for surviving spouses and children are tied to the benefits earned by the deceased wage earner. Because the President has yet to explain how the benefits cuts he is proposing for wage earners will affect surviving spouses and children, no precise estimate of the impact on his proposal of surviving spouses and children is possible. But the number of survivors likely to be affected is large.
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