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Speech
Splits Maine Delegations Along Party Lines
By: Bart Jansen
Maine's Republican
senators commended President Bush Wednesday for
proposing reforms to strengthen Social Security
and for pledging to work with Congress to craft
them. But the state's Democratic House members
disputed Bush's contention - which drew both
hisses and a standing ovation in the House
chamber - that the program is heading toward
bankruptcy, and that private investment accounts
should be part of the solution.
Sen. Olympia
Snowe, who will play a crucial role
in the debate as a member of the Finance
Committee, insisted that changes in Social
Security can't jeopardize guaranteed benefits
for the elderly. She voiced concern about
running up potentially $2 trillion in debt if
workers begin diverting about one-third of their
Social Security payroll taxes into personal
accounts.
Bush pledged in his State of the Union speech to
"listen to anyone who has a good idea to offer."
Snowe
welcomed his offer to work with Congress.
"If you're diverting away from the existing
trust fund, obviously that will raise questions
about how we make that up in the future,"
Snowe
said. "I think it's important he suggested he
will work with Congress and work with any and
all options available."
Sen. Susan Collins praised Bush for tackling
such an important generational issue, which she
contends is so complicated that Congress should
merely study it this year and legislate next
year.
But she is waiting to hear whether Social
Security will continue to guarantee benefits to
all participants, even if private investment
accounts are added, as Bush wants.
"He made a strong case that Social Security
solvency over the long term is a problem,"
Collins said. "I would like him to answer the
question of whether or not there would be a
guaranteed benefit under Social Security
regardless of how one's personal account does in
the market.
"I think we need a guaranteed benefit as we have
now," she said. "I want to make sure that people
who work their whole lives are not in a
situation where a bad experience in their
personal account plunges them into poverty."
But Rep. Tom Allen argued that Bush overstated
the financial concerns facing Social Security,
while masking cuts in benefits that would result
from diverting a portion of payroll taxes into
private accounts.
"It's not going bankrupt. It's not exhausted.
It's not in crisis," Allen said. "He didn't tell
Americans that what he is proposing is severe
cuts in Social Security benefits even for people
who don't elect for private investment
accounts."
Rep. Mike Michaud said benefits could be cut 46
percent. He vowed to reintroduce legislation for
a constitutional amendment to prevent creation
of private accounts for Social Security.
He said, "Social Security is like an insurance
policy. I don't want to gamble that on the stock
market."
About 258,000 Mainers receive Social Security
benefits, which average $750 per month. The
state is disproportionately aged, poor and
disabled, so any threat to that safety net is
keenly watched.
Snowe
said 2,000 constituents have already voiced
their concerns to her.
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