Sunday, December 26, 2004
[Diamond & Orszag] propose a reform plan that would rescue the program both from its projected financial problems and from those who would destroy the program in order to save it. Saving Social Security’s strategy balances benefit and revenue adjustments, following the precedent set by the last major Social Security reform in the early 1980s. The authors’ proposal restores long-term balance and sustainable solvency to the program without imposing additional burdens on the rest of the budget. Further, it protects disability and young survivor benefits and strengthens Social Security’s protections for low earners and widows. Most important, the plan preserves the program’s core social insurance role by providing a base-level of assured income to American workers and their families in time of need.
On Wednesday, the Congressional Budget Office released a 57-page report, Long-Term Analysis of the Diamond-Orszag Social Security Plan (12/22/04), prepared at the request of Senator Larry Craig (R-Idaho), Chair of the Senate Special Committee on Aging.
The CBO analysis considers the impact that the proposed plan would have on the Social Security program, the federal budget, the U.S. economy, and present and future beneficiaries.
For additional documents, see: