[Congressional Record Volume 145, Number 84 (Tuesday, June 15, 1999)]
[Senate]
[Pages S7019-S7020]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      THE SOCIAL SECURITY LOCK BOX

  Mr. GRASSLEY. Mr. President, I rise today to express my support for 
the Social Security ``lock box.'' This legislation is vital to the 
future of the Social Security program. I commend my colleagues, 
Senators Domenici, Abraham, and Ashcroft on their leadership and 
dedication to the fiscal year 2000 budget resolution which establishes 
goals

[[Page S7020]]

for the next ten years by setting aside projected Social Security 
surpluses of $1.8 trillion.
  The unified budget system created during President Lyndon Johnson's 
administration allows the government to account for non-Social Security 
programs using Social Security funds. For years it masked the size of 
the federal deficit. When it comes to Social Security, this accounting 
method has fanned unfavorable public sentiment. According to a survey 
conducted by the National Public Radio, the Kaiser Foundation, and the 
Kennedy School of Government, Americans believe that the Social 
Security trust fund is somehow being misused. Asked why the system is 
in trouble, more people (65%) selected ``money in the Social Security 
trust fund is being spent on programs other than Social Security'' than 
any other reason. It's time to change the system. The lock box 
legislation would help restore the public's trust in the system and 
ensure Congress and the President don't squander the surpluses 
accumulating in the Social Security trust fund.
  The surplus could be very tempting to the President and Congress to 
spend. The Social Security ``lock box'' would institute a 60-vote 
budget point of order in the Senate which would limit Congress's 
ability to pass a budget resolution which uses a portion of the Social 
Security trust fund for non-Social Security purposes. In addition, this 
legislation would institute a limit on the debt held by the public.
  Passing this legislation demonstrates Congress's ability and 
discipline to save money. Taxpayers and beneficiaries believe 
``reform'' will translate into higher taxes and lower benefits. One way 
to quell public concern is by starting out on the right foot. We can 
protect the Social Security trust fund from being drained for non-
Social Security purposes. As Members of Congress, we owe this to the 
future generations of America. As Senators, we should understand the 
dynamics of saving the Social Security trust funds because we all have 
constituents in our home states who have doubts about Social Security 
money being there for them when they retire. That is why this 
legislation is so important: it will help restore the confidence of the 
American people in their government. Locking away the Social Security 
trust fund is a key way to secure the public's peace of mind. Wage 
earners who contribute a sizable percentage of their paycheck every 
week to the public retirement system have grown leery about the Federal 
Government using their Social Security taxes for other purposes.
  President Clinton, pledged in his 1998 State of the Union Address, to 
``save every cent of the Social Security Surplus.'' Some Members of 
Congress including myself along with Senators Gregg, Breaux, and Kerrey 
have put forth proposals to save Social Security. However, if Congress 
and the White House reach a Social Security stalemate this year, the 
lock box legislation offers a bonus economic benefit. It would ensure 
the public debt is reduced. That's because the Social Security lock box 
effectively would limit the amount of public debt, which would prevent 
Social Security revenue from being used for other programs.
  Some have expressed concern that passing this legislation would 
stifle Congress's ability to address emergency situations such as 
economic recession or war. Those situations were anticipated in the 
development of the lock box legislation. This bill would allow the 
flexibility necessary to address such situations by suspending the 
public debt limit in specific instances such as recession or a 
declaration of war.
  We are at a point in time where talk is cheap and execution is 
everything. At one time or another we all learned the steps of first 
aid and the first step that is taken is to stop the bleeding. We need 
to stop the bleeding of the trust fund dollars from the Social Security 
trust fund.
  I ask my colleagues to demonstrate the courage necessary to pass this 
bill and preserve the future of our great Nation.
  I yield the floor.

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