2008 Presidential Candidates on Social Security By: Pratima Jagarlamudi Ashley Vranek

Agenda Introduction Republican Candidates’ Views Democratic Candidates’ Views Conclusion

Introduction Social Security growing problem – Pay-as-you go system – Closing gap between workers and beneficiaries Kathy Casey-Kirschling – First baby boomer to apply for S.S.

Republican Party Views Reduce future benefits Establish private savings account Oppose increase in taxes Many candidates have not announced a formal plan

Republican Candidates Rudolph Giuliani Mitt Romney Fred Thompson

Rudolph Giuliani Former mayor of New York City Has not announced a formal plan Favors – Bi-partisan decision – Ownership and choice over money – Private savings accounts

Mitt Romney Former Governor of Massachusetts Most vague in plan to reform Favors – Bi-partisan decision – Private savings accounts – No reform for current beneficiaries Does not favor tax increase

Fred Thompson Represented Tennessee as a Republican on the Senate Only candidate with a formal plan Quote from article in NPR – “The fact of the matter is we're bankrupting the next generation. We're spending the money of our grandkids and those yet to be born.”

Thompson Continued Formal Plan – Contribute two percent of pre-tax income to personal savings account – Index benefits to inflation rate and not wage rate – Those 57 years old and older would not experience any decrease in benefits Results from plan – Decrease of future benefits due to indexing – Greatly slow down the deficit rate

Democratic Party Views Oppose privatization – will not lengthen solvency – increase debt $5 trillion dollars – cut benefits 40% Increase Social Security tax on wealthy Against raising retirement age to protect benefits

Democrat Candidates John Edwards Hillary Clinton Barack Obama

John Edwards Former U.S. Senator from North Carolina Against privatization Proposes that the cap for Social Security tax remain at $97,500 but tax people with income greater that $200,000 – Doughnut hole between $97,500 and $200,000

Hillary Clinton U.S. Senator from New York and former First Lady Steers clear of the issue of Social Security – “Well, I take everything off the table until we move toward fiscal responsibility and before we have a bipartisan process. I don’t think I should be negotiating about what I would do as president.” Promotes fiscal responsibility but provides no guidance on solving the issue

Clinton Continued Strongly opposes Bush’s plan to privatize Social Security Advocates – Protecting Social Security instead of continually borrowing from the Social Security trust fund – We should receive the benefits we paid for Off the record supports Edwards’ plan

Barack Obama U.S. Senator from Illinois Against privatization Proposed Working Families Savings Accounts to increase retirement savings and encourage people to save

Working Families Savings Accounts Gives working people earning up to $50,000 per year the opportunity to put their money in either an IRA or 401(k) Match the money with a 50% tax credit for contributions up to $2000 One of the few Democrats that may be willing to consider personal accounts

Obama Continued May 2007: everything on the table October 2007: against raising retirement age and for raising Social Security taxes on the wealthy – Raise the current Social Security tax cap on income of $97,500 or – Plan proposed by Edwards

Conclusion President Bush supports privatization and lost fourteen years of solvency 2008 Presidential Candidates – Republicans: support privatization and increasing the retirement age – Democrats: support increasing the Social Security tax cap of $97,500

Questions?