Washington, DC - Today, Congressman Edolphus "Ed" Towns (D-Brooklyn) rejected President Bush's recent proposal to privatize Social Security, which would take trillions of dollars out of the Social Security Trust Fund and jeopardize the benefits of future retirees.

"The Administration's proposal does nothing to strengthen the long term outlook of the program," said Towns. "The proposal actually weakens Social Security by taking $2 trillion dollars out of the Trust Fund, forcing the government to borrow trillions of dollars, mostly from foreign governments.  This soaring debt will be passed on to our children and grandchildren, likely leading to future tax increases and jeopardizing long term job growth."

Towns also pointed to the congressional testimony of Federal Reserve Chairman Alan Greenspan who noted that the Administration's plan would not fix any long term solvency problem of Social Security. 

Social Security, which provides a guaranteed benefit to 48 million Americans, has often been called the nation's greatest poverty reduction program.   Without Social Security, 48 percent of all seniors would live in poverty.  In fact, the poverty rates for African-American seniors would more than double if not for the program. 

Towns says that he is greatly concerned by proposals floated by the Administration's Social Security Commission  which would adjust the benefit formula for recipients.  These formula changes would cut workers benefits by 40 percent. 

"Because Social Security provides the greatest assistance to those who need the most help, it is not surprising that the President's plan will hurt women, minorities and disabled seniors more than others," said Towns.  "Social Security gives people with lower lifetime earnings, often minorities and women, a greater return on what they paid in.  However, private accounts would not be able to continue these progressive benefits." 

"People should also remember that private accounts do not have the guaranteed annual cost-of-living increase like regular Social Security," added Towns. "What will our seniors do if the market has a down year?  Any plan that cuts a guaranteed benefit for privatization would jeopardize the retirement and economic security of seniors through a gamble in stock market."

Towns says he is open to proposals creating private accounts in addition to Social Security but he remains firmly opposed to any plan that would weaken the existing program and risk our long term economy.

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