Thursday, February 22, 2007

Vilsack proposes indexing Social Security to prices not wages

Former Iowa Governor Tom Vilsack, running for the Republican nomination for President, has just proposed that Social Security should be indexed to prices rather than to wages.

Wages increase more than prices do. What indexing SS behefits to prices rather than wages will do is slowly lower benefits for everyone on Social Security, while lowering benefits for higher wage-earners more than for lower wage-earners. The result is that everyone gets lower benefits, and in about 80 years, high and low wage-earners will all be receiving the same amount in benefits. For all beneficiaries the benefits received will replace a lot less of their preretirement earnings than is currently the case.

For a very good explanation, go over to Eschaton and follow the links.

This is another Republican proposal designed to subtly destroy the Social Security program.

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