[Congressional Record Volume 146, Number 154 (Thursday, December 14, 2000)]
[Extensions of Remarks]
[Page E2185]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E2185]]
              PERSONAL SOCIAL SECURITY ACCOUNT ACT OF 2000

                                 ______
                                 

                          HON. JOHN R. KASICH

                                of ohio

                    in the house of representatives

                      Thursday, December 14, 2000

  Mr. KASICH. Mr. Speaker, today I am introducing the ``Personal Social 
Security Account Act of 2000.'' Since its inception in 1935, Social 
Security has provided financial independence and retirement security 
for millions of senior citizens. Unfortunately, Social Security is on 
the road to bankruptcy. Just fifteen years from now, Social Security 
will not collect enough payroll taxes to pay promised benefits. This is 
not a temporary problem limited to the retirement of the baby boomers. 
Americans are living longer and having fewer children. There will be 
fewer workers to support each retiree even after the baby boomers are 
gone.
  Social Security faces a cash shortfall of more than $130 trillion 
over the next 75 years. While these deficits will not affect today's 
seniors, our children face three choices--raise payroll taxes by 50%, 
reduce promised benefits by 30%, or face a crushing burden of debt. We 
must not let Social Security's tidal wave of red ink be our legacy to 
America's children. We must find a way to protect our seniors' 
retirement security without sacrificing our children's standard of 
living. That's why I have introduced the ``Personal Social Security 
Account Act of 2000.'' This legislation would increase future benefits 
by prices instead of wages, and it would allow workers to create their 
own personal savings account.
  Under current law, initial benefits for new retirees are increased 
each year by the growth in wages. As a result, over the next 75 years, 
promised benefits will nearly double, even after adjusting for 
inflation. Under this legislation, benefits for workers under the age 
of 55 will be increased by the consumer price index. Switching from 
wage indexing to price indexing will eliminate the Social Security 
shortfall and avoid future payroll tax increases while at the same time 
guaranteeing today's level of benefits for future retirees.
  Workers under the age of 55 will also be given the option to invest 
an average of 2% of their wages in their own personal savings account. 
The exact amount each worker can invest will be related to their wages 
in order to maintain the progressivity of the current Social Security 
system. Based on historical rates of return, most workers who choose to 
set up a personal account will earn far greater benefits than the 
govenrment could ever afford to provide under current law.
  Today's economic prosperity provides us with an historic opportunity 
to preserve Social Security for three generations--our parents, 
ourselves, and our children. We must seize this opportunity and build a 
bipartisan consensus for Social Security reform.

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