William CharlesTinker wtinker@metrocast.net
Tue, 4 Jan 2005 14:08:46 -0500


Report: Bush Planning To Cut Social Security Benefits

January 4, 2005

WASHINGTON -- The White House is refusing to confirm or deny a report
President George W. Bush may recommend a plan to cut Social Security

The Washington Post reported Tuesday that the administration has signaled to
top Republicans it wants to change the way retirement benefits are
calculated in a way that would lower payments.

But Press Secretary Scott McClellan insisted the president hasn't made any

In the general principles he's outlined, Bush has vowed not to cut benefits
for those "at or near retirement." But McClellan refused to define what that

The Post story said the formula change would reduce payments by small
amounts in the early years -- and by more than half for those retiring in

Bush wants to create private retirement accounts to replace some of the
benefits he says Social Security can't afford to pay.

Workers could divert a portion of their payroll taxes into personal
investment accounts similar to a 401k.

Copyright 2005 by The Associated Press. All rights reserved. This material
may not be published, broadcast, rewritten or redistributed.