Friday Alert  3/18/05
Alliance for Retired Americans
888 16th Street, N.W. -  Washington DC, 20006 - (202) 974-8222 - www.retiredamericans.org

Majority Disapprove of President's Social Security Privatization Approach
A new Washington Post/ABC poll shows "only 35 percent of Americans now saying they approve of his handling of the issue," while "56 percent disapprove of his approach." Among younger workers -- whom the administration claims love the idea of private accounts -- support for the plan is not much higher. According to the poll, "only 40 percent of these younger workers say they support Bush's Social Security proposal."

Alliance President George Kourpias said, "Seniors will not be fooled by the administration's 'Chicken Little' rhetoric.  We will continue to teach the younger generations the true promise of Social Security."

In addition, 58 percent of those polled said the more they hear about the President's plan, the less they like it. The poll, combined with detailed interviews last week, showed significant issues with those in all groups though 68 percent of adults aged 18 to 29 said they support investing some Social Security contributions in the stock market.  Support falls with the respondents' age, to 60 percent among those 40 to 49, 53 percent among those 50 to 64, and 37 percent among those 65 and older.

Business Group Backs Out Of Social Security Coalition
The Financial Services Forum, a group representing the nation's biggest financial companies and headed by former Rep. Rick Lazio (R-NY) said Monday it had backed out of a business coalition raising millions to back President Bush's Social Security privatization campaign. The Forum, which represents Citigroup, Goldman Sachs and American Express, was a co-founder of the Coalition for the Modernization and Protection of America's Social Security (Compass), but has left the coalition because its members could not endorse President Bush's plan to divert payroll taxes into private accounts. "Business groups are starting to learn that they cannot have it both ways-publicly promoting privatization and damaging Social Security while profiting from the president's plan," said Edward Coyle, Alliance executive director.  The forum's retreat follows the decision by two securities firms -- Edward Jones and Waddell & Reed -- to drop out of a related lobbying group set up to promote private accounts on Capitol Hill, the Alliance for Worker Retirement Security.

Alliance 'Social Security Petition Truth Truck' Will Stop in 7 States
The Alliance's "Social Security Petition Truth Truck Tour" officially launches its road show Monday, March 21. A flatbed truck carrying more than a million messages to Congress from seniors against privatizing Social Security will visit select Congressional districts as part of a tour called the Social Security Truth Truck Tour: 3000 Miles, 1 Million Voices. The petition cargo is the centerpiece of the 16-stop, six-state road show which is expected to travel through the home districts of more than 20 members of Congress who the Alliance believes can be instrumental in saving Social Security.  The truck tour will kickoff in Ft. Lauderdale, FL, and then travel on to North Carolina, Indiana, Ohio, New York and end in Pennsylvania on April 1. For details, visit www.retiredamericans.org/truthtruck. If you live near one of our stops, please come out and join us.

Bush Concedes Personal Accounts Don't Address Solvency
President Bush, in a press conference this week, publicly acknowledged that private accounts do not address the Social Security solvency issue.  "Personal accounts do not solve the issue," said Bush, later reiterating, "I repeat, personal accounts do not permanently fix the solution." In the U.S. Senate, 50 Senators voted to reject any attempts to reduce Social Security benefits or increase the debt.  All Democratic Senators were joined by five Republicans to vote for a resolution that "Congress should reject any Social Security plan that requires deep benefit cuts or a massive increase in debt."

Administration Fiscal Policies Threaten Current and Near Retirees
The rise in the national debt and borrowing brought on by the 2001-04 tax cuts will undermine the federal government's ability to fund traditional, essential programs including Social Security and Medicare, according to a report from the Economic Policy Institute.  In a study, "Collision Course: the Bush Budget and Social Security," EPI reports that current retirees, over 55 workers, and the disabled, likely face benefit cuts in coming years, despite the president's assurances to those groups that their current benefits are safe.  Social Security and Medicare are the most probable targets to cut, because the budgetary gap will be so large there will be few other budget line items large enough to make enough of a difference, according to the report available at www.epinet.org.

Senate Vote Stops Medicaid Program Budget Cuts
After intense lobbying on both sides, the Senate passed by a vote of 52-48 an amendment to the FY06 budget resolution that negates instructions to the Finance Committee to trim $15 billion over five years from mandatory programs within its jurisdiction, especially Medicaid.  Senators' Gordon Smith (R-OR) and Jeff Bingaman (D-NM) amendment creates a reserve fund to establish a bipartisan Medicaid commission that would consider and recommend appropriate reforms to the Medicaid program.  In addition, the amendment eliminates Medicaid cuts a move that will protect states and vulnerable populations.  Alliance secretary-treasurer Ruben Burks said, "The Alliance celebrates this Senate vote and we hope that the entire Congress will get that this key health care program cannot be axed but must be strengthened and grown for all Americans."

New Field Director Joins Alliance
The Alliance is pleased to announce that Ben Waxman has joined us as our new Director of Field Mobilization. Ben has extensive experience building field organizations. He has worked on State Senate, Congressional, and Senate campaigns in his native Maine as well as field efforts in John Kerry's presidential efforts in Pennsylvania working with Labor 2004.  He can be reached at (202) 974-8251. 

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