The Bush Benefit Cut Would be the Largest in History for Middle-Class Seniors. "The 1983 Social Security reform, for example, lowered benefits for average workers by 17 percent, with the reduction phased in over 46 years." Under the president's proposal, two benefit cuts will impact middle-class seniors -- the indexing cut and the privatization tax for those who contribute to a private account. "The combined effect of progressive price indexing and the President's private accounts would be to reduce Social Security defined benefits by 73 percent for medium earners and 97 percent for the so-called 'high earners' [whose earnings today average about $59,000]." [Center on Budget and Policy Priorities, 5/4/05; 5/2/05]