[Congressional Record Volume 145, Number 76 (Tuesday, May 25, 1999)]
[Extensions of Remarks]
[Page E1092]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




HOLT-LUCAS-MOORE ``LOCK-BOX'' WILL PROTECT SOCIAL SECURITY AND MEDICARE

                                 ______
                                 

                           HON. RUSH D. HOLT

                             of new jersey

                    in the house of representatives

                         Tuesday, May 25, 1999

  Mr. HOLT. Mr. Speaker, I rise today to offer, along with my 
colleagues, Representatives Lucas and Moore, legislation to safeguard 
two of our nation's most important programs for the elderly, Social 
Security and Medicare.
  As I travel around my central New Jersey District, I hear constantly 
from people who rely on Social Security and Medicare. Congress has no 
greater domestic priority this year than strengthening and protecting 
Social Security and Medicare. Our bill would ensure that that priority 
is recognized in law.
  The Holt-Lucas-Moore Social Security and Medicare ``lock-box'' would 
require that every penny of the entire budget surplus, not just the 
Social Security surplus, be saved until legislation is enacted to 
strengthen and protect Social Security and Medicare.
  Any new spending increases would have to be fully offset until 
solvency has been extended for Social Security by 75 years and for 
Medicare by 30 years. This requirement would be enforced by new points 
of order against any budget resolutions or legislation violating this 
condition.
  My colleagues and I believe that spending any projected budget 
surpluses before protecting and strengthening Social Security and 
Medicare would be wrong. Projected budget surpluses over the next 
decade offer a once-in-a-lifetime opportunity for addressing the 
challenges that Social Security and Medicare face. This hard-won 
achievement resulted from responsible steps that were taken in the 
past. We should not deviate from the path of responsibility now, with 
problems looming over the horizon for Social Security and Medicare. In 
fact, we should follow the old adage to ``fix our roofs when the sun is 
shining.'' This is in keeping with what the President has proposed.
  Some portion of the surpluses outside of Social Security and Medicare 
will be needed to address the challenges that those programs will face. 
Thus, we should save Social Security and Medicare first before 
squandering any of the Social Security surplus, the Medicare surplus or 
any other government surplus.
  Furthermore, paying off the public debt can make an important 
indirect contribution to the sustainability of Social Security and 
Medicare. Virtually all economists, including Federal Reserve Chairman 
Greenspan, argue that paying down the public debt would increase 
national savings, promote long-run economic growth and create a larger 
future economy to support a larger, retired population. Fiscal 
discipline has served our economy well in recent years by helping to 
sustain the longest peacetime expansion in United States history.
  We are offering this proposal now because we are concerned about the 
carelessness with which some Social Security ``lock-box'' proposals are 
being brought to the floor, completely bypassing the normal committee 
process. Proposals to protect and strengthen Social Security and 
Medicare deserve thorough examination and careful consideration. 
Congress should not take short-cuts when considering changes to these 
hallmark programs for America's seniors.
  For example, Congress is expected to consider this week the Herger-
Shaw ``lock-box'' bill, which offers only the minimum protection for 
Social Security and Medicare. While Herger-Shaw does attempt to protect 
the Social Security surplus, merely doing this does nothing to extend 
solvency for Social Security, and it does nothing at all for Medicare. 
The Holt-Lucas ``lock-box'' is superior to Herger-Shaw because its 
lock-box is more secure and has more money in it. Holt-Lucas saves the 
entire surplus, not just the Social Security surplus.
  Mr. Speaker, Social Security and Medicare are some of the most 
important and successful programs of the 20th Century. We must not 
forget that they provide vitally important protections for American 
seniors. A majority of workers have no pension coverage other than 
Social Security, and more than three fifths of seniors receive most of 
their income from Social Security.
  Let's put the need of America's current and future retirees first