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FOR IMMEDIATE RELEASE: February 8, 2005

SCHUMER QUESTIONS BUDGET GIMMICKS THAT LEAVE OUT SOCIAL SECURITY PRIVATIZATION & TAX CUT COSTS

Budget Shows Social Security Not in Crisis

Today, Senator Charles E. Schumer addressed misplaced budget priorities that completely leave off the costs of Social Security privatization and permanent tax cuts from the Administration’s proposed budget and from their 5 year budget. With a national debt that is skyrocketing, privatizing Social Security and making the tax cuts permanent will increase the per capita burden to $25,000 - a Birth Tax that is inexcusable. The Senator previously released a letter to the White House from a unified Democratic Caucus calling on President Bush to send a plan for Social Security reform that does not exacerbate the national debt.

“I want to make sure I am being perfectly clear about this, so every New Yorker and every American understands what I’m saying in plain English – no big numbers, no percentages, no fancy talk. The President has two top priorities for his second term, and neither of them will take effect during his second term and neither of them is included in his budget for the upcoming year.

“This budget trickery is made clear in the President’s Fiscal Year 2006 proposal. The 10-year cost of making the tax cuts permanent is $1.1 TRILLION. This is all new borrowing that will add to the “birth tax” owed by each American, in terms of the exploding public debt they will each have to repay. However, only 5 percent of the cost occurs within the 5-year budget window. 95 percent of the costs of making these irresponsible tax cuts permanent is NOT included in the budget.

“The numbers are even worse for the President’s risky scheme to partially privatize Social Security. Even though Social Security privatization is his Other Top Priority, not one penny of the cost appears in his budget. So the President is out there doing the hard sell for a $787 billion plan, which most of us believe will cost even more, and it’s not in the budget. In fact, his entire Social Security package wouldn’t even START phasing in until he’s out of office.

“So the President wants to pass two bills – First he wants to pass a legislative bill while he’s in office to turn Social Security into social insecurity and make tax cuts permanent. And then he wants to pass the REAL financial bill to future generations to pay the Privatization Penalty and the Birth Tax. We’re not going to let that happen.”

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