ENRONGATE & SEC
LIE: Bush attempted to distance himself from Enron’s Kenneth Lay by claiming Lay supported his opponent (Governor Richards) in 1994 and he first got to know Lay only after elected.
FACT: Lay gave $37,500 to the Bush 1994 campaign and Lay claims he was “very close” to Bush at that time. (Slate 01.17.02) The Bush-Lay connection goes back much further, as in 1988, Bush lobbied the Argentinean government to award a contract to Enron. (Mother Jones March-April 2000)
LIE: Bush pledged to increase SEC enforcement in signing the Sarbanes-Oxley corporate reform legislation.
FACT: Bush’s FY2003 budget cuts SEC enforcement by $209 million. (Boston Globe 12.29.02)
LIE: In the Enron aftermath, Bush pledged “to do more to protect worker pensions”.
FACT: Four month’s later the Bush administration announced plans to permit employers to convert traditional pension plans into “cash balance” plans that lower benefits for long-serving workers. (Caught On Film: The Bush Credibility Gap)
FAITH-BASED INITIATIVES
LIE: In 2001 the Bush administration promised to create a $700 million “Federal Compassion Fund”.
FACT: The President did not allocate a single penny for the fund in his 2001 budget. (Green – The American Prospect 07.30.01).
LIE: The Bush administration claims there exists a “widespread bias against faith-based organization’s (FBOs) in Federal service programs” and that complying with federal anti-discrimination employment laws in a major obstacle to FBO participation.
FACT: Recent studies have found no barriers to FBOs participation in government programs and “no hard evidence that hiring requirements are keeping [FBOs from applying for government contracts.” (Hudson Institute – Fruitful Collaborations, The Roundtable on Religion and Social Welfare Policy – Government Partnerships with Faith-Based Service Providers).
FOREIGN POLICY
LIE: Condoleezza Rice claimed “[The President has been] very supportive of the Nunn-Lugar program [which helps secure Russian nuclear materials]. The funding was not cut. . . . All the way back in the campaign, the president talked about perhaps even increasing funding for programs of this kind." --Meet the Press, November 11, 2001.
FACT: "The administration's budget request cut the Department of Energy part of the Nunn-Lugar program from $872 million to $774 million and the Department of Defense portion by another $40 million. The "materials protection and accounting" program that safeguards and monitors Russian nuclear materials was cut $35 million; the program to subsidize research facilities for jobless Russian nuclear scientists and keep them from working for terrorists, another $10 million. (Center for American Progress, Claim v. Fact Database)
LIE: In his October 28, 2003 press conference, Bush claimed that I was the first president ever to have advocated a Palestinian state."
FACT: On January 7, 2001, President Bill Clinton said, "There can be no genuine resolution to the [Middle East] conflict without a sovereign, viable Palestinian state that accommodates Israel's security requirements and demographic realities." (Corn – BushLies.com 10.28.03)
LIE: During his Asian tour, President Bush told Indonesian news that Congress has dropped opposition to military training programs for Indonesia and that the US was ready to “go forward with” a new package of training programs.
FACT: Congressional opposition to the training programs has increased due to concerns that the Indonesian military may have been involved in the killing of two Americans in Papua. In addition, no new programs have been planned or approved. (Priest – The Washington Post 10.20.03)
LIE: White House spokesman Ari Fleischer denied tacitly endorsing the Venezuelan coup by stating that the coup was the “result of a message of the Venezuelan people.”
FACT: That is exactly what he said as the White House foolishly backed the overthrow of a democratically elected government and was the only democracy in the western hemisphere that failed to condemn the coup. In addition, the Venezuela government claims to have a videotape of US officials discussing coup preparations with dissident soldiers. (Jonathan Chait 06.04.02, AP 10.22.03)
LIE: During the campaign, Bush promised Armenian groups that he would “ensure that our nation properly recognizes the tragic suffering of the Armenian people” who were victims of a “genocidal campaign.”
FACT: The Bush administration has refused to recognize the Armenian genocide. (Redding Record Searchlight 04.24.01)
LIE: Bush promised Jewish leaders “[a]s soon as I take office I will begin the process of moving the U.S. ambassador to” Jerusalem.
FACT: Bush has suspended any action to move the U.S. embassy to Jerusalem. (Washington Post 06.13.01)
LIE: President Bush denied blaming the Clinton Administration’s Camp David Middle East peace summit for the Palestinian intifada.
FACT: The day before issuing this denial, Bush stated “we’ve tried summits in the past, as you may remember. It wasn’t all that long ago where a summit was called and nothing happened, and as a result we had significant intifada in the area.” (Slate 4.18.02)
FOREIGN TRADE
LIE: During the campaign, Bush stated he opposed “import fees” and would “work to end tariffs and break down barriers everywhere, entirely”.
FACT: As President, Bush has imposed tariffs on steel and softwood lumber increasing costs to U.S. businesses and consumers and risking retaliatory sanctions. (Washington Post 03.25.02, Business Week 03.25.02)
HARKEN & HALLIBURTON
LIE: In September 2003, when asked by Tim Hussert whether he was “involved in any way in the awarding of [Iraq] contracts” to Halliburton, Cheney replied “Of course not, Tim. . . . And as Vice President, I have absolutely no influence of, involvement of, knowledge of in any way, shape or form of contracts led by the [Army] Corps of Engineers or anybody else in the Federal Government."
FACT: Internal Pentagon documents reveal that the awarding of the Halliburton contracts “has been coordinate [with] VP’s office.” An internal Pentagon email reveals that the award of no-bid Halliburton contracts “has been coordinated with the VP’s office.” (Burger & Zagorin, Time Magazine 05.30.04, CAP Daily Report 06.01.04 and 06.15.04).
LIE: Bush claims that he “absolutely had no idea [about Harken’s liquidity problems] and would not have sold [his stock] had I known."
FACT: Harken’s president warned board members of liquidity problems that would “drastically affect” operations two months before Bush’s stock sale. Harken’s lawyers also circulated a memo warning executives and directors not to sell any stock. Bush sold his stock for $4/share and it quickly dropped to $1.25. (San Francisco Chronicle 07.05.02, Guardian 11.02.02, Washington Monthly 12.02)
LIE: Bush claims to have cooperated with an SEC investigation of his Harken transactions.
FACT: Bush quashed evidence that Harken’s lawyers advised Bush and other executives against selling their stock and only provided it to the SEC after it had ended its investigation. (Guardian 11.02.02)
LIE: Bush signed an agreement in which he promised to hold the Harken stock at issue for six months.
FACT: Bush sold the Harken stock two months later. (The Dubya Report 07.18.02)
LIE: Bush claimed he timely filed the required SEC disclosure form after selling his Harken stock and asserted that the SEC must have lost it.
FACT: Bush did not file until eight months after the deadline for doing so. (Washington Post 07.04.02)
LIE: Cheney claimed that while at Halliburton he imposed a “firm policy” against trading with Iraq. “[W]e’ve not done any business in Iraq since the sanctions [were] imposed, and I had a standing policy that I wouldn’t do that.”
FACT: Senior Halliburton executives claim there was no such policy. Halliburton’s affiliates signed contracts with Iraq to sell more than $73 million in oil production equipment during Cheney’s tenure, helping Iraq increase crude exports by 450% between 1997 and 2000. Senior Halliburton executives were certain Cheney was aware of this business. Cheney also defended circumvention of a Clinton executive order banning US trade and investment in Iran. (Financial Times 10.05.00, Washington Post 06.23.01)
HEALTH CARE & PRESCRIPTION DRUGS
LIE: When asked about the flu vaccine crisis, Bush claimed: we relied upon a company out of England [and that] we took the right action and didn't allow contaminated medicine into our country.
FACT: That isn't true. Chiron Corp., the company whose vaccine plant was contaminated, is a California company - subject to regulation by the U.S. government - that operates a factory in England. It was the British authorities who, after inspecting the plant, revoked the factory's license on October 5th. [Daily Mis-Lead 10.18.04]
LIE: President Bush assured seniors that under his Medicare prescription drug program corporations would not “dump retirees from their existing prescription drug coverage.”
FACT: Under a little noticed provision quietly added by the administration, companies providing coverage to retirees are given a new subsidy and retain the subsidy even if they almost completely eliminate coverage for retirees. As a result, 3.8 million retirees are projected to have their coverage reduced or nearly eliminated. (Daily Mis-Lead 07.14.04).
LIE: The Bush administration claims its Medicare prescription drug cards will provide “significant price reductions off typical retail prices” for seniors.
FACT: A Congressional report found that the drug prices available to beneficiaries using the “discount cards” are no lower than existing prices and even higher than prices available in Canada, under the US Federal Supply Schedule and through discount pharmacies such as Drugstore.com. Moreover drug companies raised their prices by 3 times the rate of inflation immediately prior to the release of the “discount cards.” (Daily Mis-Lead 05.04.04, “New Medicare Drug Cards Offer Few Discounts, House Committee on Government Reform – Minority Staff April 2004, AP – 07.01.04)
LIE: During the October 17, 2000 debate, Bush promised a patients’ bill of rights like the one in his own state which included a right to sue managed-care companies for wrongfully refusing to cover needed treatments. “If I’m the president . . . people will be able to take their HMO insurance company to court.
FACT: The patients’ bill of rights bill has long been dead and the Bush administration argued before the Supreme Court against the Texas law’s provision permitting such suits
LIE: The Bush administration sold its Medicare prescription drug plan to conservatives in Congress as having a cost of $400 billion over ten years, enabling it to narrowly win passage in December 2003.
FACT: The White House knew the costs were $551 billion - more than 25 percent higher. The administration threatened to fire Medicare’s top financial analyst (Richard Foster) if he released the information. Two months after the President signed the law, the administration revised its costs estimates to $534 billion.
One month after passage of the bill, the White House revealed that the program costs actually were $534 billion - more than 25 percent higher. AARP, which worked with the administration in drafting the bill, revealed that these higher estimates were "well known in the fall" but is only now being made public. Taxpayers for Common Sense, a Washington-based budget watchdog group claim Congress got "suckered by a classic financial bait-and-switch by the administration." (Kemper & Simon - Los Angeles Times 01.31.04, Pugh - Knight Ridder 03.11.04, Kemper - Los Angeles Times 03.14.04, CAP Progress Report 03.15.04.
LIE: I haven't yet [decided to ban importation of Canadian drugs.]. I just want to make sure they're safe. When a drug comes in from Canada, I want to make sure it cures you and doesn't kill you.
FACT: White House Strongly Opposed Drug Re-Importation Despite Congressional Research Service Reports Concluding Canadian Drugs Are Just as Safe as Those in the US. . In a Statement of Administration Principals issued by the White House Office of Management and Budget on July 23, 2003, Bush stated his strong opposition to drug re-importation. The SAP states, “H.R. 2427 [to allow the re-importation of prescription drugs] is dangerous legislation. It would expose Americans to greater potential risk of harm from unsafe or ineffective drugs, would be extremely costly to implement, and would overwhelm FDA's already heavily burdened regulatory system.” This despite the fact that the Congressional Research Service, a branch of the Library of Congress, issued reports in 2001 and 2003, concluding both times that the Canadian drug supply was safe for importation to the US. The 2003 report stated, "The statutory requirements for approving and marketing pharmaceutical products in the United States and Canada are, in general, quite similar." It found that medications manufactured and distributed in Canada meet or surpass quality control guidelines set by the FDA. [Office of Management and Budget, SAP on HR 2472, 7/23/03, www.whitehouse.gov/omb; New York Times, 6/21/03; Knight Ridder, 11/27/03; USA Today, 8/12/03]
LIE: The Bush administration is fighting importation of cheaper prescription drugs from Canada by claiming they are unsafe and thereby protecting pharmaceutical companies who have given over $74 billion (or $2,033 per hour) since 2000.
FACT: HHS and FDA officials cannot identify a single American injured as a result drugs purchased from licensed Canadian pharmacies. One of the nation’s leading health experts stated the administration’s argument was “hogwash” since “drugs purchased through the Canadian health care system are every bit as safe as those available in the United States.” (Daily Mis-Lead 02.25.04)
LIE: In signing the bill, Bush declared that "some older Americans spend much of their Social Security checks just on their medications. This new law will ease the burden on seniors and will give them the extra help they need.”
FACT: Most Medicare beneficiaries will end up paying MORE for their prescriptions. The average beneficiary out-of-pocket expenses would rise from $2,318 in 2003 to $2,911 in 2007 (in 2003 dollars), since the law prohibits the government from negotiating for lower prices (unlike the VA which uses its negotiating power to save billions on drug prices). (Campaign for America’s Future Fact Sheet)
LIE: “My drug plan helps those who need it most. The new benefit provides comprehensive drug coverage for people with low incomes.”
FACT: The Center on Budget and Policy Priorities found that “several million of the nation’s poorest elderly and disabled beneficiaries will be made worse off by the new legislation, because they will have to pay more for drugs than they currently pay under Medicaid, will be denied coverage for some drugs they currently receive through Medicaid, or both.” The $600 "transitional" drug benefit that starts in June is not available to the 6.4 million lowest income Medicare beneficiaries who are also enrolled in Medicaid, nor to the 11.7 million seniors who have retiree coverage.
In addition, currently millions of Medicare beneficiaries have private insurance to fill the gaps in their Medicare coverage (“Medigap” policies), but the new law prohibits the sale of Medigap policies. According to the Congressional Budget Office approximately 2.7 million seniors could lose benefits more generous than provided under Medicare. (Campaign for America’s Future Fact Sheet; Center for American Progress 02.05.04)
The Bush’s Administration’s Medicare Ads
LIE: "It's the same Medicare you've always counted on, plus more benefits like prescription drug coverage."
FACT: Millions of Medicare beneficiaries will have fewer benefits due to this law. Seniors who have supplemental drug coverage through Medigap must drop it if they want to join the new drug benefit. Employers will drop drug coverage for 2.7 million retirees due to the new drug benefit. Employers will reduce drug coverage for up to 9 million additional retirees due to flawed employer subsidies in the law. 6.4 million seniors who have drug coverage through Medicaid now will be forced to enroll in the Medicare drug benefit. As a result, they will have higher cost sharing and be denied coverage entirely for some drugs. (Center for American Progress 02.05.04)
FACT: Savings are elusive and erode over time. Drug discount cards are not guaranteed to provide any meaningful discounts, may not cover the drugs seniors need, and may change discounts and covered drugs at any time. Medicare is prohibited from maximizing savings by negotiating lower drug prices. Under the drug benefit, some beneficiaries will not save and in fact will spend more than they do now. Seniors will still have to pay up to 100% of drug costs due to the gap in coverage ("donut hole") and ability for private plans to impose strict drug formularies, prior authorization requirements, etc. The value of the drug benefit shrinks much faster than inflation, meaning seniors will have to spend an ever-increasing share of their income on prescription drugs. (Center for American Progress 02.05.04)
LIE: "So, my Medicare isn't different, it's just more?"
FACT: Less Medicare benefits for higher premiums. Higher Part B deductible beginning in 2005 and each year thereafter. Higher Part B premiums for all beginning in 2005 as a result of overpayments to private plans. Higher Part B premiums for those with incomes above $80,000 beginning in 2007. (Center for American Progress 02.05.04)
The Bush’s Administration’s Medicare Mailer
LIE: "This new law preserves and strengthens the current Medicare program.”
FACT: The bill weakens Medicare by privatizing it, at great cost to beneficiaries and taxpayers. The President estimates the new law will result in an extra $46 billion going to private plans. The Congressional Budget Office agrees with the President that the cost of covering seniors through private plans is "substantially higher" than the cost of covering them through traditional Medicare. (Center for American Progress 02.05.04)
LIE: "You will choose a prescription drug plan and pay a premium of about $35 a month."
FACT: Premiums will vary and are not limited to $35 or any other amount. Private plans get to decide what premium they want to charge. The premium will vary plan by plan, area by area, and year by year. Over time, the premium rises faster than seniors' income. (Center for American Progress 02.05.04)
LIE: "Medicare then will pay 75% of costs between $250 and $2,250 in drug spending. You will pay only 25% of these costs."
FACT: There is no guarantee that any senior will get this benefit: Private plans decide which drugs to cover and under what circumstances. Beneficiaries have to pay 100% of the costs for drugs that don't fit the plan's rules. Private plans are required to pay 75% of the costs of covered drugs on average. Actual cost sharing amounts on any particular drug may be much different. (Center for American Progress 02.05.04)
LIE: "You will pay 100% of the drug costs above $2,250 until you reach $3,600 in out-of-pocket spending."
FACT: The actual size of the gap in coverage ("donut hole") is more than twice the amount this implies. The actual gap in coverage is $2,850, not $1,350. In addition, the gap in each private plan will be set by the plan and not Medicare. Thus, the gap could be even larger. (Center for American Progress 02.05.04)
The Bush’s Administration’s Medicare 800-Line
LIE: "Extra help will also be available for people with lower incomes."
FACT: Many low-income people will be left out or lose coverage. The $600 "transitional" drug benefit that starts in June is not available to the 6.4 million lowest income Medicare beneficiaries who are also enrolled in Medicaid, nor to the 11.7 million seniors who have retiree coverage. Millions of low-income seniors may not get assistance due to eligibility restrictions for those with certain assets. Those seniors who have drug coverage through Medicaid now will be forced to enroll in the Medicare drug benefit in 2006. As a result, they will have higher cost sharing and be denied coverage entirely for some drugs. (Center for American Progress 02.05.04)
LIE: "These cards offer a discount off the full retail price of prescriptions. Savings are estimated to be 10 to 25% on many drugs."
FACT: None of these things is actually required. The discount cards do not have to offer discounts off all drugs. There is no guarantee of any discount, let alone a discount of any particular amount. Discounts and the drugs that are covered may change at any time. (Center for American Progress 02.05.04)
LIE: "Almost everyone with Medicare can choose to join a Medicare-approved drug discount card."
FACT: The 6.4 million Medicare beneficiaries who are also enrolled in Medicaid are ineligible for the discount card. (Center for American Progress 02.05.04)
LIE: "Plans might vary, but in general, all people with Medicare will have access to a voluntary prescription drug benefit, which will provide significant savings for seniors and people living with disabilities."
FACT: Plans will vary. Each private plan gets to decide which drugs it covers, with what cost-sharing, and at what premium. Also, The benefit isn't voluntary. Anyone who misses the initial enrollment period for the new drug benefit may have to wait months to enroll and face significant financial penalties. Finally, the savings are not significant. As the Center for Economic and Policy Research notes, "seniors in the middle income quintile will pay an average of $1,650 a year in out-of-pocket expenses for prescription drugs in 2006 - a figure nearly 60% more than they paid in 2000." (Center for American Progress 02.05.04)
LIE: The Bush administration touted the Medicare prescription drug expansion as creating a modern Medicare system that provides “seniors with prescription drug benefits” and establishing Health Savings Account (“HSA’s") which will allow more Americans to save for health care needs and more small businesses to help workers secure health coverage.
FACT: The Congressional Budget Office projects that 2.7 million retirees will lose their current drug coverage through their former employer since employers will drop such coverage once the Medicare benefit becomes available. The plan provides little relief for low income seniors and would cost seniors with drug expenses under $835 per year more than they currently spend. Finally, according to studies, premiums for employer-based coverage “could more than double” if HSA’s became widespread. (Center for American Progress 12.13.03)
LIE: During the debates, Bush claimed that “all seniors” and not just poor would be covered under his plan.
FACT: Only seniors at or below 135% of the poverty level would be covered in full. (ABC News.com 10.4.02)
LIE: President Bush has argued that medical malpractice reform and allowing small business to buy group insurance would make “a big difference” in reducing the 43.6 million Americans without health insurance. Vice President Cheney has argued that “medical liability reform” is the key to control health costs.
FACT: According to the Congressional Budget Office, malpractice costs account for a very small fraction of total health care spending and even radical reform ‘would have a relatively small effect on total health plan premiums”. In addition, the CBO found that allowing small businesses to buy at group rates would only add coverage for 0.6 million people, as one-third of the nation’s uninsured are employed by large companies. (The Daily Mis-Lead 10.23.03 and 07.06.04)
LIE: In banning research on embryonic stem cells, Bush claimed that the ban still would permit research on “more than 60” existing lines cells which “could lead to breakthrough therapies and cures.”
FACT: Only 11 cell lines are now available for research, all of which were grown mouse cells making them inappropriate for treating people. (Politics and Science in the Bush Administration)
LIE: Bush claimed he “brought Republicans and Democrats together” to enact a Patients Bill of Rights in Texas.
FACT: Governor Bush vetoed such a bill in 1995 and when a veto proof majority passed it, Bush allowed it to become law but refused to sign it. (Washington Post 10.18.00, Salon 10.05.02)
LIE: Bush bragged about a Texas Children’s Health Insurance Program extending coverage to 500,000 children passed while he was Governor.
FACT: Bush fought the program and tried to limit its reach to nearly half its current level. (Salon 10.05.02)
LIE: Bush stressed the need to support children’s hospitals at a 2001 appearance at an Atlanta children’s hospital.
FACT: Bush’s first budget proposed cutting grants to children’s hospitals by 15% and his FY2004 budget proposes to cut these grants by 30%. (Caught on Film: The Bush Credibility Gap)
HOUSING
LIE: Campaigning in New Mexico, Bush praised the Indian Housing and Guarantee Fund program, saying it makes “sense to have public policy aimed at helping people own their own home. I can’t think of a better use of resources.”
FACT: Apparently he can, because his budget calls for an 80 percent reduction in funding. (Associated Press 8.14.04)
JOBS
LIE: Bush has bragged about job growth in “high-growth, high-paying industries” to support his administration’s economic policies.
FACT: According to USA Today job in lower-wage industries and regions are growing at a faster pace than higher-wage jobs and this “is less potent for the economy because the majority of the new work isn’t accompanies by fat paychecks. . (Daily Mis-Lead 03.09.04)
LIE: In March 2004, Secretary of Labor Elaine Chao told Congress that the President did not sign administration’s annual economic report to Congress which promised that the President’s economic plan would create 2.6 million jobs by 2004.
FACT: In February 2004, President Bush released a personally signed copy of this report, but the administration has quickly distanced itself from the projections. (Daily Mis-Lead 03.09.04)
LIE: “Jobs are on the rise.” (SOU 2004)
FACT: While the unemployment rate dropped in December, this was due to the fact that “the economy was so bleak that 255,000 of the jobless simply stopped looking for work”. (State of the Union Response – Center for American Progress 01.20.04)
LIE: Bush claimed “I want people to understand that when somebody wants to work and can’t find a job, it says we've got a problem we’re going to deal with.”
FACT: When faced with increased out-sourcing of US job overseas, the administration’s approach to dealing with the problem was to praise outsourcing “as a good thing” for international trade.
In addition, the Bush administration actively sponsors and participates in conferences and workshops to help American companies put operations and jobs in china. (The Daily Mis-Lead 02.10.04, Center for American Progress 02.10.04)
LIE: The White House has made the following claims on job growth: 2002 – projected 3.4 million jobs for 2001-03 2004 – projected 2.6 million jobs in 2004
FACT: The White House has “repeatedly and significantly overstated . . . the number of jobs the economy would create”. Instead of creating 3.4 million jobs in their first three years, the Bush administration lost 1.7 million jobs. The Bush administration already is distancing itself from its February 9th projection of 2.6 million jobs in 2004. (The Daily Mis-Lead 02.18.04; Milbank – Washington Post 02.24.04)
LIE: The White House proposed reclassifying low-paid fast food jobs as “manufacturing jobs”.
FACT: This is an attempt by the White House to obscure the fact that 2.7 million manufacturing jobs have been lost on his watch. Fast food preparation is not value added manufacturing and fast food jobs pay approximately 21 percent less than manufacturing jobs. (The Daily Mis-Lead 02.24.04)
POLLING
LIE: At his April 13, 2004 press conference, Bush explained "And as to whether or not I make decisions based upon polls, I don't. I just don't make decisions that way...If I tried to fine-tune my messages based upon polls; I think I'd be pretty ineffective."
FACT: "One [White House] adviser said the White House had examined polling and focus group studies in determining that it would be a mistake for Mr. Bush to appear to yield" and apologize for mistakes during the April 13 press conference. (Center for American Progress, Claim v. Fact Database)
THE RECESSION
LIE: In his December 28th radio address, Bush claimed that the recession began before he took office. Both he and Vice President Cheney have repeated this claim during the reelection campaign. The Administration also unilaterally changed the method for calculating a recession to move the starting date of the Bush recession to 2000. This is even after President Bush is on record that “our economy has been in recession since March [2001]”. (Daily Mis-Lead 09.01.04, Center for American Progress Report 09.02.04)
FACT: The economy was still growing at the end of 2000, despite the incoming administration’s attempt to talk it down. The recession began in March 2001 during the first year of the Bush administration. This is even after President Bush is on record that “our economy has been in recession since March [2001]”. (Slate 12.30.02, Progress Report 03.03.04, Daily Mis-Lead 09.01.04, Center for American Progress Report 09.02.04)
SOCIAL SECURITY
LIE: I understand that they need to get better rates of return than the rates of return being given in the current Social Security trust, and the compounding rate of interest effect will make it more likely that the social security system is solvent for our children and our grandchildren. (3RD Debate)
FACT: CBO: Bush Plan Will Force Benefit Cuts. According to CBO, the President’s plan “would reduce expected retirement benefits relative to scheduled benefits, even when the benefits paid from IAs [individual accounts] under CSSS Plan 2 are included… For example, benefits for the 1980s birth cohort would be 30 percent lower, and benefits for the 2000s cohort would be 45 percent lower.” [CBO, “Long-term Analysis of Plan 2 of the President’s Commission to Strengthen Social Security,” 7/21/2004, page 15 and Table 2
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