Democrats Ask Their Question of the Day on Social Security: $754 Billion?
With the Republican Medicare prescription drug bill now expected to cost more than $700 billion, are we certain that the Republican Social Security privatization plan will cost its reported $754 billion?”
Republican Privatization Plan Would Cost $5 Trillion. A Senior Administration Official stated in a briefing that the president’s plan would cost $754 billion over ten years. “These figures are misleadingly low. They are generated by using a ten-year budget window (2006- 2015) that includes only five years of the fully phased-in plan. The plan would not be launched until 2009 and not be in full effect until 2011. Over the first ten years that the plan actually was in effect (2009-18), it would add about $1.4 trillion to the debt. Over the next ten years (2019- 28), it would add about $3.5 trillion more to the debt. All told, the plan would add $4.9 trillion (14 percent of GDP in 2028) to the debt over its first 20 years.” [Center on Budget and Policy Priorities, “An Overview of Issues Raised by the Administration’s Social Security Plan,” 2/7/05 http://www.cbpp.org/2-2-05socsec4.htm]
Yes, I know, the wording is … sort of … Senatorial.