[Congressional Record Volume 144, Number 71 (Thursday, June 4, 1998)]
[Extensions of Remarks]
[Page E1017]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       REMARKS OF ANDREW J. MAIR

                                 ______
                                 

                           HON. BOB SCHAFFER

                              of colorado

                    in the house of representatives

                         Thursday, June 4, 1998

  Mr. BOB SCHAFFER of Colorado. Mr. Speaker, I rise today to introduce 
the remarks of my friend and constituent, Andrew J. Mair. Even in 
retirement, Andy continues his long tradition of public service by 
speaking and writing on important issues of domestic and foreign 
policy. His insightful commentary on social security and the federal 
budget was published in the Ft. Collins ``Coloradoan'' on Sunday, May 
31, 1998.
  As Andy points out, current surpluses generated by the Social 
Security tax are being used to finance other functions of the federal 
government. Of the $5.5 trillion gross national debt, $1.7 trillion is 
held by government accounts. This portion of the debt represents 
obligations of one government agency, in this case the Treasury 
Department, to various federal trust funds. The Social Security trust 
fund is a good example. I hereby submit for the Record, Andy Mair's 
report.

                                                     May 14, 1998.
       To the Editor: We are in a period of record prosperity and 
     a booming economy. Unemployment is at a 28-year low. This 
     prosperity has resulted in a record amount of money collected 
     by Social Security in payroll taxes. The surplus goes into 
     the Social Security trust fund.
       For decades the federal government has been borrowing the 
     surplus of Social Security and spending it on other federal 
     programs. Therefore, the money owed to Social Security 
     becomes part of the federal public debt.
       The current push to reform Social Security and the 
     discussions on what to do with money accumulated by balancing 
     the budget caused me to search out data on the 1998 federal 
     budget.
       The White House Office of Management and Budget collects 
     and maintains financial data for the federal government. The 
     data in the attached chart is taken from their report. Copies 
     are available to the public.
       The chart shows a rapid expansion in the money collected 
     and the money spent by the federal government. It shows the 
     increase that started in the 1980s has continued through the 
     1990s.
       It shows total receipts, ``all money collected'' by the 
     federal government; total outlays, all money spent; and the 
     increase in federal debt by fiscal year.
       Using three six-year periods in the chart provides the 
     opportunity to evaluate the last six years.

       TABLE 1.3.--SUMMARY OF RECEIPTS, OUTLAYS, AND FEDERAL DEBT       
                        [In billions of dollars]                        
------------------------------------------------------------------------
                                                               Federal  
                                     Receipts     Outlays        debt   
------------------------------------------------------------------------
1980.............................       $517.1       $590.9     $909,050
1986.............................        769.3        990.5    2,120,627
1992.............................      1,091.1      1,381.7    4,002,453
1998.............................      1,566.8      1,687.5    5,465,000
------------------------------------------------------------------------

       Total money collected in 1980 was $517.1 billion and in 
     1998 was $1,566.8 trillion, an increase of over 300% in 18 
     years. The ``outlays,'' total money spent, went from $590.9 
     in 1980 to $1,687.5 trillion in 1998, and the public debt 
     increased from $909,050 billion in 1980 to $5,465,000 
     trillion as of April 15, 1998.
       The annual report from the office of Social Security shows 
     total income for retirement, survivor payments, and 
     disability insurance for 1997 was $449.9 billion, and total 
     outgo's were $367.5 billion. This increased the Social 
     Security trust fund by $75.4 billion.
       Projections for fiscal year 1998 show income to Social 
     Security will exceed $500 billion, and $100 billion will be 
     added to the trust fund. This will bring the total value of 
     the Social Security trust fund to over $700 billion.
       By the year 2012 projections are that money paid out to 
     retirees will exceed money received, unless drastic changes 
     are made in Social Security. Money to pay Social Security 
     benefits will have to be borrowed by increasing the federal 
     debt, or dramatically raising taxes. Will either of these 
     choices be available?
       If a thirty-year-old worker looks at the record of the last 
     18 years, or the last six years. He cannot be optimistic 
     there will be any Social Security for him.
       In prosperous times, with everybody working, why have we 
     increased total federal debt by over $1 trillion during the 
     last six years? Why have we increased federal spending by 
     over $300 billion?
       No, the day of big government is not over. We are not 
     putting Social Security first. We have the best government in 
     the world. Social Security is a good program. It can be saved 
     if the government will put its financial house in order and 
     stop the rapid expansion in federal spending.
                                                   Andrew J. Mair,
                                         Retired, U.S. Government.

  By current estimates, the Social Security trust fund will continue to 
run a surplus until 2012, when the first of the Baby Boom generation 
begins to retire. After that time, general federal tax revenues will be 
required to cover the ever-increasing difference between Social 
Security expenditures, and the revenue from Social Security taxes. 
Unless changes are made, this situation will place an ever-increasing 
squeeze on the federal budget, forcing either massive cuts in other 
programs or cutting Social Security benefits bloating the debt or 
eventually, a combination of these responses. The arithmetic which 
makes this a certainty is clear: As recently as 1950, there were 16 
workers for every Social Security beneficiary. Today there are only 
3.3. By 2025, there will be fewer than two.
  What is needed is a fundamental reassessment of how the federal 
government spends the taxes it collects. Though the budget is 
technically near-balance, we must continue to reduce spending and real 
reforms must be instituted to sustain Social Security.
  The National Debt Repayment Act (H.R. 2191) offers responsible 
management for any future budget surpluses. As an original co-sponsor 
of this legislation, I am working hard to see it become law. The 
proposal will require an annual surplus of one percent. The proceeds 
from that surplus will then be used to pay for the various trust funds, 
tax cuts and debt repayment. This planned, systematic approach to the 
budget will assure continued progress toward a rational fiscal policy. 
This will enable us to further decrease interest rates, ensure the 
integrity of the Social Security and highway trust funds, and eliminate 
the burden our children and grandchildren would otherwise have to bear. 
Reforms such as H.R. 2191 are a good first step, but we must act now to 
assure the government fulfills its obligations to today's retirees, as 
well as tomorrow's Clearly, spending the ``surplus'' on new programs is 
unacceptable. I thank Andy Mair for his continuing involvement on this 
and other issues of importance to my constituents and all Americans.

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