Issue Position: Social Security - Overview

Issue Position

Issue Position: Social Security - Overview

Social Security since its inception in the midst of the Great Depression, has grown to be an American institution. More than any other government program, Social Security has fulfilled its promise of providing a federally administered insurance program for nearly all Americans, protecting them should they become disabled, lose a family breadwinner prematurely and in old age. Fully a third of Social Security beneficiaries are not retirees. This publicly administered disability and life insurance security covering nearly all Americans has been described as protection that few Americans could afford through private sector insurers. It has been incredibly cost-efficient as well, with an annual operating cost of less than 1.3%.

Social Security is most notable however, as a federally administered retirement security insurance program… Social Security IS NOT an investment program. The OASDI (Old Age, Survivor and Disability Insurance) program has fulfilled its promise over the years… NEVER failing to issue a check to any beneficiary as promised. It has over the years however, had to respond to trends that had the potential to adversely affect its operations. Congress has in such instances sustained the fiscal vitality of Social Security through a combination of tax increases, and what were effectively benefit cuts. For example, in 1983, Congress legislated gradual increases over time, to the retirement age in combination with increases in the payroll tax, which together, are conservatively projected to fiscally sustain Social Security through at least 2042.

The Presidents proposal to "partially privatize" Social Security is diametrically at odds with the basic premise upon which Social Security was founded. At its inception, the purpose of Social Security was to provide a basic income floor in retirement for virtually all Americans. Throughout its history, Social Security has been modified as circumstances required in order to fulfill its obligations. Today the situation is no different.

The President's proposal centered around private investment accounts weakens the fiscal viability of Social Security by drawing at least $2 Trillion dollars borrowed from China to finance this transition. This plan would only draw closer the dates at which Social Security would deplete the surplus in the Social Security Trust Fund, from which this administration has borrowed heavily as a result of the revenue deficit created by massive tax cuts. The President's most recent proposal involving Mr. Pozen's plan for progressive indexing of benefits is merely a detour to the same goal of achieving the "Ideological" objective of dismantling Social Security. In keeping with the President's "ideologically" driven focus, ALL of the President's so-called plans or initiatives to "save" Social Security involve draconian cuts in benefits far more severe than if no action to reform Social Security were taken.

Historically there has always been a vocal group of conservatives who opposed Social Security on "ideological" grounds. Today this opposition philosophy endures, with its proponents taking what they believe to be their golden opportunity to weaken the program to such an extent that it no longer provides guaranteed benefits at a level that sustains its popular support. Their ideological goal therefore, is not to secure Social Security, but to destroy it.
My platform

* Support legislation that strengthens Social Securities basic tenets as a federally administered retirement, disability and premature death benefit insurance program.

* Broaden the mandatory participation to include state and local governmental employees not currently participating, at an agreed upon age cutoff.

* Support legislation making the FICA tax more income progressive by making the first $10,000 of earnings exempt from FICA tax.

* Increase immediately the cap on earnings subject to FICA taxation from the current level of $90,000 to $150,000 to be followed by annual adjustments over the next 15 years to a level of $300,000.

* Support legislation instituting some "Means Testing" of benefits at higher "retirement" income levels (earned and unearned income).

* Raise or remove limits on retiree earnings based on current definition of the federal retirement age of benefit eligibility.

* Decrease or eliminate FICA taxation on retiree "earned" income.

* Support investment of a maximum of 10% of surplus receipts by The Social Security Administration in conservative market investments in an attempt to increase overall earnings on Trust Fund investments.

* Increase cap on IRA's to $100,000 to encourage savings.

* Develop a program of federally sponsored defined contribution plans outside of and in addition to Social Security.

* Act to re-institute federal pay as you go budget rules as a means of controlling federal spending.

* Act to legislate a timeframe for gradual elimination of the practice of financing federal government deficit spending by "dipping" into The Social Security Trust Fund.

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