Thursday, June 30, 2005
Copyright © Las Vegas Review-Journal

Study: Bush Social Security plan would hurt rural Nevada

Report prepared by self-described group of progressives

President Bush's plan for Social Security reform would disproportionately harm Nevada's rural residents, who rely more on benefits than those living in bigger cities, according to a new report.

Senate Democratic leader Harry Reid of Nevada announced the release of the study Wednesday, saying it's important rural Nevadans understand the dangers of Bush's call for private Social Security accounts.

"Social Security and its guaranteed benefits reflect the best of America's values," Reid said in a statement. "I believe (Bush's) plan would destroy Social Security, and this report shows it would be especially disastrous for rural Nevada."

The study by the national advocacy group, Institute for America's Future, found rural residents in Nevada depend 33 percent more on Social Security than those living in more populated areas, and Bush's proposal would result in a lifetime benefit reduction of more than $181,886 for the typical Nevada worker.

It also said 44,930 of the state's rural residents receive Social Security checks each month and 6.6 percent of rural Nevada's income comes from Social Security benefits.

"Cuts to Social Security benefits would swell the ranks of the rural poor to levels not seen since the Great Depression," the report said. "A dramatic reduction in the economic well-being of future rural seniors will have a devastating impact on rural American communities, governments and businesses."

The report was prepared by a self-described group of progressives whose members include John J. Sweeney, president of the AFL-CIO, the Rev. Jesse Jackson, of the Rainbow Coalition, and Patricia Ireland, former president of the National Organization for Women.

The group advocates Medicare reform, education initiatives, energy independence and cleaning up Congress in addition to opposing the administration's plans to revise Social Security.

Bush has described a program headed toward financial disaster, citing estimates that Social Security will begin paying out more than it collects in taxes as early as 2018.

To fix the program, he has proposed allowing younger workers to divert some of their Social Security payroll taxes into private accounts that could be invested in stocks and bonds. Those who enrolled would see their traditional government benefit cut, with total benefits determined by the success of each personal account.

Bush envisions no change for retirees or workers age 55 and older.

Democrats argue the accounts would require more government borrowing and steep benefit cuts. Public opinion polls show lukewarm support for the Bush plan.

"If we do nothing with Social Security, President Bush would be able to draw his Social Security benefits until he is 106 years old," Reid said during a conference call with Nevada reporters. "This is all a scam from this administration. Social Security is not in crisis."

A spokeswoman for Rep. Jim Gibbons, a Republican who represents Nevada's rural areas, had not seen the report but said there was little doubt Social Security was facing "a long-term solvency problem" and that Gibbons was committed to ensuring all Nevadans continue to receive benefits.