Issue Position: Social Security

Issue Position

In 1983, Congress raised the payroll tax rate that funds Social Security benefits to prepare for the retirement of the baby boom generation. Much to my disappointment, however, the actual cash surplus from the excess payroll taxes (amounting to $2.4 trillion including interest over the last 25 years) was borrowed from the Trust Fund and used to support government spending on other programs. In return for the borrowed funds, the Social Security Trust Funds were credited with Treasury bonds. These bonds are backed by the full faith and credit of the federal government and they earn interest, but these bonds are not "real" assets with cash value. Instead, they merely represent a first claim on future revenues. If the revenues are not there (and they will not be as long as the government continues to run budget deficits), then the federal government will have to raise taxes or cut other spending to finance promised Social Security benefits.

It would have been my preference to adhere to a balanced budget all these years and use the Social Security surplus to pay down our national debt. This would have put the federal government in a better position to address the economic crisis we face today and make future benefits more affordable. Unfortunately, that opportunity is now lost and we must find a new path. You can be sure that I will use my influence as a senior member of the Senate Budget Committee and as a new member of the Senate Finance Committee to find a way to put our fiscal house in order and preserve Social Security for all generations.

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