Improving Social Security: Rep. Burton & Expert panel Convey need for Reform and Lay out Rebublican Plans to Strengthen the System

IMPROVING SOCIAL SECURITY: REP. BURTON & EXPERT PANEL CONVEY NEED FOR REFORM AND LAY OUT REPUBLICAN PLANS TO STRENGTHEN THE SYSTEM

Washington, D.C. - Congressman Dan Burton (R-IN-5), joined by a panel of distinguished experts, held a town hall meeting today at Noblesville High School, entitled Strengthening Social Security: Securing Seniors Benefits & Ensuring Solvency for Future Generations. At the meeting, Congressman Burton and the panel discussed the various options for improving our Social Security System, including the creation of personal retirement savings accounts. Congressman Burton and Mr. Allan B. Hubbard, Assistant to the President for Economic Policy & Director of the National Economic Council, released the following statement after the meeting:

"When Social Security was first created back in 1935, there were over 40 workers paying for every retiree, while today there are only three," stated Congressman Burton.

"According to the latest Social Security and Medicare Trustees' Report, by the year 2017 - little over a decade from now - the Social Security System will be paying out more than it takes in, and without any changes, Social Security will be bankrupt by the year 2041.

Furthermore, if left unchanged, Social Security and Medicare will eat up a quarter of all Federal revenue dollars by the year 2030. This would require either a significant tax hike or more than a 25 percent reduction in spending for priorities such as: national security, air traffic control, and medical research. Strengthening Social Security is clearly a challenge that must be addressed in the very near future."

Continued Congressman Burton, "I believe we need responsible reform measures that allow younger workers to voluntarily invest a portion of their contribution into personal retirement savings accounts, while still protecting the benefits of current and near retirees. Personal accounts will give younger workers ownership over their future individual retirement needs by allowing them to control more of their own money, thus giving them the chance to earn higher rates of return than the current system can afford to pay. A Social Security system that was designed for the world of 1935, simply will not meet the needs of our future generations. Changes must be made, and the sooner we act, the more successful they will be. After all, I believe we owe it to our children and grandchildren to leave behind a legacy of sound financial planning that includes retirement security."

Concluded Mr. Hubbard, "The President is committed to protecting Social Security for today's seniors and strengthening Social Security permanently for future generations."

http://www.house.gov/burton/pr032805.htm