Tuesday, January 04, 2005
Bush Tax Cuts Destroy Worker's Pension Protections
From the BBC:
Taxpayers may have to bail out the US agency that protects workers' pension funds, leading economists have warned.
With the Pension Benefit Guaranty Corporation (PBGC) some $23bn (£12bn) in deficit, the Financial Economists Roundtable (FER) wants Congress to act.
Cash-strapped US companies, including those in the airline, car-making and steel industries, had argued in favour of the 2004 rule change, claiming that funding the insurance premiums adequately would force them to have to cut jobs.
"With a little firmer hand on the pensions issues in the US, I think that Congress could avoid having to turn to the taxpayer and instead turn the obligations back onto the companies that deserve to pay them," said Professor Dennis Logue, dean of Price College of Business at the University of Oklahoma.
Our CEO President is truly running the country like a Fortune 500 company - looting workers' pension funds to pay for today's executive bonuses (ie tax cuts.)