Dems: Private Accounts Would Hurt Farmers

RALEIGH, NC -- Representative Bob Etheridge (D-NC) said today that President Bush's proposal to allow taxpayers to invest a part of their Social Security taxes into private accounts would have a negative impact on farmers.

According to Etheridge, most farmers don't have access to 401(k) plans and 75% of farmers fund their own retirement. However, the Bush plan will provide younger farmers and their children with the opportunity to have a government-provided 401(k) plan, which seems to have completely eluded Etheridge.

Etheridge went on to say that, "They (farmers) depend on Social Security when the crop yield is low or the weather is bad". One of the elements of President Bush's proposal is to fund the new personal accounts with Social Security money that was originally intended to go directly to farmers. If the Social Security funds intended for farmers during bad years is insufficient to pay for the personal accounts, President Bush proposes to fill the gap by seizing the crops of delinquent farmers during subsequent good years.

Etheridge also said that rural Americans are usually older and more likely to rely on Social Security benefits. Another element of President Bush's plan is reduce Social Security benefits for older Americans to pay for the new personal accounts, especially those over the age of 55.