[Congressional Record Volume 143, Number 118 (Tuesday, September 9, 1997)]
[House]
[Page H7022]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        SOCIAL SECURITY WILL BE SHORT OF FUNDS AS EARLY AS 2005

  (Mr. SMITH of Michigan asked and was given permission to address the 
House for 1 minute and to revise and extend his remarks.)
  Mr. SMITH of Michigan. Mr. Speaker, I would like to talk about what I 
consider one mistake in our balanced budget agreement. I would start by 
asking the question: What tax has this Government increased 36 times 
since 1971? The answer is the Social Security tax.
  More often than once a year we have been increasing the Social 
Security tax on American workers. It needs explanation. When Congress 
enacted the Social Security law in 1935, it was financed by a pay-as-
you-go program, where existing workers pay in their tax to support the 
benefits of existing retirees. It has always been so. As there are 
fewer and fewer workers contributing their taxes to more and more 
retirees, Social Security keeps running short of money, and the tax is 
increased. It is not a sustainable program. That is why it is a mistake 
for this Congress, for this Government, for this President not to start 
working on long-term solutions for Social Security.
  Dorcas Hardy, a former Commissioner, says we are going to be short 
again of enough money coming in from those workers as early as 2005. 
Last year I introduced the Social Security Solvency Act that holds 
seniors harmless and does not increase taxes on workers. The Social 
Security Administration predicts that the legislation would keep the 
System solvent for at least the next 75 years. Let us do something 
about it Social Security.

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