Message of the Day from Al Gore

www.algore.com AL GORE WILL MAKE RESPONSIBLE CHOICES TO PROTECT, EXPAND RETIREMENT SECURITY Bush Plan Would Bankrupt System or Force Benefit Cuts "If we can offer you higher savings and better returns while keeping Social Security as safe and secure as ever, why would we try to accomplish the very same goal by threatening Social Security, gambling a trillion dollars and creating a brand new kind of deficit? I have very different priorities. I believe we have to honor our mothers and fathers, by making sure Social Security is strong and safe for their retirement. You might say that this November 7th, Social Security itself is on the ballot." -- Al Gore There are important choices regarding retirement security at stake on Election Day. Al Gore would make responsible decisions, protecting Social Security to prevent benefit cuts, tax increases or a raise in the retirement age. He would also create a new, tax-free savings opportunity in addition to Social Security's guaranteed benefit to encourage younger workers to save and invest for retirement. A new study released on Monday found that George W. Bush's plan to drain $1 trillion out of the Social Security Trust Fund would force a choice between bankrupting the system or slashing benefits. GORE WOULD PROTECT SOCIAL SECURITY Gore would protect Social Security in an off-budget "lock box," so that surpluses could only be used for Social Security or to pay down the national debt and not for massive tax cuts or pork barrel spending. Gore would use interest savings from debt reduction to extend the life of Social Security until at least 2054 without raising the retirement age, cutting benefits or increasing taxes. GORE WOULD EXPAND RETIREMENT SECURITY Gore would create Retirement Savings Plus accounts to encourage families to save for retirement and supplement -- not replace -- their guaranteed Social Security benefit. The federal government would match individual contributions to the Retirement Savings Plus Accounts with tax credits with the hardest-pressed families receiving the largest credits. This voluntary, tax-free savings opportunity would help couples that fully participate build a retirement nest egg of up to $400,000. NEW STUDY PREDICTS BUSH PLAN WOULD BANKRUPT SYSTEM OR FORCE BENEFIT CUTS The new study, released by the Institute for America's Future and authored by four leading economists and Social Security experts, found that Bush's plan to partially privatize Social Security and take $1 trillion from its surplus would leave two choices: bankrupt the entire system by 2023 -- 14 years earlier than currently projected -- or cut Social Security benefits by more than 50 percent. As vice president and as a member of Congress, Gore has fought to ensure retirement security is protected for older Americans and strengthened for future generations. He has worked to protect and strengthen Social Security and worked with the current Administration to improve private pension programs and increase retirement savings. Gore has also been a leader in the fight to preserve Medicare, fighting Republican efforts to increase the eligibility age and cut the program.   (10/18/00)

Rebuttal from George W. Bush: TWO INDEPENDENENT STUDIES: GOVERNOR BUSHS SOCIAL SECURITY PLAN, NOT AL GORE'S, WILL STRENGTHEN SOCIAL SECURITY Studies also find Governor Bush's plan will help low income workers save for retirement and ensure younger workers can depend on Social Security Two independent economic studies say it is Governor Bush's plan, not Al Gore's, that will strengthen Social Security. Both studies support Governor Bush's plan to ensure Social Security's future through personal retirement accounts. Economic Security 2000 (ES 2000), a non-profit, non-partisan organization, released a "Social Security Report Card" on the Bush and Gore Social Security plans. Governor Bush received 6 As, a B+, and a B-. Vice President Gore got 4 As, a B, and 3 Ds. ES 2000 is co-chaired by Senator Robert J. Kerrey (D-NE), Representative Jim Kolbe (R-AZ), and Representative. Charles W. Stenholm (D-TX). The President of Economic Security is Sam Beard, a former aid to Senator Robert F. Kennedy (D-NY). The Social Security Report Card views the Bush plan as "bold and forward looking" because "he commits $80 billion per year to include all Americans in building savings and a nest egg. In Social Security, all working Americans, including lower income Americans, will benefit and become shareholders in the American economy." "By investing $80 billion per year in personal retirement accounts, Bush is adding a higher rate of return to generate more money to help make Social Security solvent," said the study. ES 2000 found inherent problems with Al Gore's plan because "In the years 2015 to 2054, Gore does nothing to reduce the $10.37 trillion Social Security deficits and proposes new spending of $2.948 trillion for Retirement Savings Plus." The study continued, "Gore's accounting defies credibility. From 2015 to 2037, there's a missing $4.3 trillion in the Social Security Trust Fund, because the money has been spent and is a debt, an IOU. Then, from 2038 to 2054, there's a missing $6.069 trillion." The report finds the fatal flaw in the Gore plan to extend Social Security's solvency: "A paper transfer of interest saved is not cash to pay beneficiaries. In 2015 through 2054, real money is only available if additional government surpluses of $250 billion per year are used for Social Security, or if the federal government borrows the money and adds $10.369 trillion to the national debt." But Gore's problems don't end with Social Security; the report finds serious problems with the Vice President's Retirement Plus Accounts by asking, "Where's the money?" and goes on to state, "Gore commits $20 billion for 10 years out of general revenue. We accept that this money exists. But we project annual costs of $75.6 billion, which costs $2.948 trillion 2015 through 2054. Where does this money come from?" A second study done by Americans For Tax Reform (ATR) agrees with ES2000's praise for Governor Bush's plan for Social Security because "it includes a central role for personal investment accounts." As the study states, "Bush has developed a means to solve the problems of Social Security that would substantially improve the future benefits of today's workers, while securing all promised benefits for today's retirees." ATR's study also notes that Al Gore's plan for the government to provide matching benefit contributions for retirement savings will not help low-workers. "Gore's add-on account also does not help low and moderate-income workers because they do not have the funds to pay into another account on top of Social Security. That is why they lag behind so far in investing in the capital markets today. Bush's proposal, by contrast, directly helps these lower income groups by allowing them to pay into the accounts part of what they are already paying into Social Security." Governor Bush's plan, according to ATR will help "roughly 30 million lower income workers today who pay no income taxes" through his personal retirement accounts. It gives all workers equal opportunity to save for their retirement which the ATR praised as "a major tax cut, as workers are allowed to keep part of their payroll taxes in their own accounts which are their own personal property." As ATR's study points out, "The personal accounts would also significantly reduce real government debt by eliminating part of the unfunded liabilities of Social Security."