CONVENTION FOCUS ON SOCIAL SECURITY AND TAXES

Republicans focused Wednesday night on economic issues, including those faced by these older residents of Philadelphia, who struggle to make ends meet.

GOP PLAN

Social Security

Opposes changing Social Security benefits for current retirees or those nearing retirement. Would give people option of moving a portion of their Social Security payroll taxes into personal retirement accounts to invest in the stock market.

Taxes

Gradually cuts taxes by $1.3 trillion over 10 years. Cuts tax rates so lower-income workers would pay 10% and the richest would pay 33% in income taxes, down from 39.6%. Doubles current $500-per-child tax credit to $1,000 per child and phases out inheritance tax.

Democratic PLAN

Social Security

Creates retirement savings plus--a program of voluntary, tax-free savings accounts with government matching funds. These accounts would be in addition to regular Social Security benefits. Supports using federal budget surplus to fund existing Social Security benefits until 2050.

Taxes

Tax cuts of $500 billion over 10 years. Proposals include $3,000 tax credit to help with long-term care costs and allowing families to save up to $10,000 tax free for college tuition.

SOCIAL SECURITY FACT SHEET

Unless action is taken, the Social Security trust fund will run out of money in 2037, according to latest estimates.

Average monthly Social Security benefit for retired workers is $804.

Each month about 38 million people receive retirement, dependent or survivor benefits through Social Security.

In 2010, the nation’s 76 million baby boomers will begin retiring. By around 2040, the population of older Americans will double.

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Sources: Social Security Administration, candidates’ campaigns