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Benefit estimates depend on who calculates them ; Quotes reflect stand on Social Security
[FINAL Edition]
| Publication : | USA TODAY- McLean, Va. |
| Author : | Oren Dorell |
| Date : | Apr 13, 2005 |
| Abstract (Document Summary) |
| * $885. House Democrats (democraticleader.house.gov) make two key assumptions: a portfolio of stocks and bonds grows 3% a year after inflation and benefit increases are tied to inflation, as [Bush] proposes, not wage growth as in current law. Inflation grows more slowly. * $1,162. The libertarian Cato Institute (socialsecurity.org), which favors investment accounts, predicts that a portfolio would grow 4.95% a year. But Cato also assumes that workers would invest not Bush's 4% of income but 6.2% -- and all of it right away, not phased in. * $2,980. The Heritage Foundation (heritage.org), a conservative think tank that favors Bush's plan, predicts an investment return of 4.7% and assumes that almost the entire 12.4% tax, minus 1.8% for disability insurance, goes into an investment account. That means no guaranteed benefit. hide... | | * $885. House Democrats (democraticleader.house.gov) make two key assumptions: a portfolio of stocks and bonds grows 3% a year after inflation and benefit increases are tied to inflation, as [Bush] proposes, not wage growth as in current law. Inflation grows more slowly. * $1,162. The libertarian more... |
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