WASHINGTON —
As the President’s Commission to Strengthen Social Security approved a final set of
recommendations today, The Concord Coalition reminded Congress and the Bush Administration
that those who support no immediate change in law are in effect supporting the
generationally inequitable consequences of the “Do Nothing Plan.”
According to the Social Security
Administration, the impact of the Do Nothing Plan, which is currently co-sponsored by 500
WASHINGTON —
As the President’s Commission to Strengthen Social Security approved a final set of
recommendations today, The Concord Coalition reminded Congress and the Bush Administration
that those who support no immediate change in law are in effect supporting the
generationally inequitable consequences of the “Do Nothing Plan.”
According to the Social Security
Administration, the impact of the Do Nothing Plan, which is currently co-sponsored by 500
members of Congress, is either a 30 percent reduction in benefits for 120 million
Americans under the age of 40 or a 40 percent increase in the payroll taxes of their
children.
“The
demographic and fiscal challenges facing Social Security in the years ahead are well
known. Failure to alter current law amounts to an endorsement of a deep benefit cut for
today’s 25 year olds, or a steep payroll tax increase. It is understandable that
political leaders will disagree on the details of any reform plan. But it would be
inexcusable if the President and Congress put another commission report on the shelf
without making any effort to craft a legislative proposal that achieves true fiscal
sustainability,” said Concord Coalition President Peter G. Peterson.
“The real and substantial
consequences of the “Do Nothing Plan” are lost in the Social Security reform
debate about which plan is best. As long as the press and voters do not hold supporters of
the Do Nothing Plan accountable for proposing either deep cuts in benefits or dramatic
increases in taxes, it is unlikely the law will be changed anytime soon. There is simply no political incentive for an
elective representative to propose specific changes now even if their reduction in
benefits and/or increases in taxes are smaller than the Do Nothing Plan,” said former
U.S. Senator and Concord Coalition Board member J. Robert Kerrey (D-NE).
