[Congressional Record Volume 150, Number 115 (Wednesday, September 22, 2004)]
[Senate]
[Page S9534]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SUBMITTED RESOLUTIONS
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SENATE RESOLUTION 432--EXPRESSING THE SENSE OF THE SENATE THAT CONGRESS
SHOULD REJECT SOCIAL SECURITY PRIVATIZATION PROPOSALS, INCLUDING THOSE
THAT REQUIRE DEEP CUTS IN SOCIAL SECURITY BENEFITS, SUCH AS THE
PROPOSALS OF PRESIDENT BUSH'S SOCIAL SECURITY COMMISSION
Mr. CORZINE (for himself, Mr. Baucus, Mr. Durbin, and Mr. Daschle)
submitted the following resolution; which was referred to the Committee
on Finance:
S. Res. 432
Whereas Social Security is based on a promise to the
American people: if you work hard and contribute to Social
Security, you will be able to retire and live in dignity;
Whereas Social Security is the primary source of income for
two-thirds of American seniors;
Whereas Social Security benefits for retired workers
average only about $900 per month;
Whereas $900 per month is insufficient to maintain a decent
standard of living in many parts of the United States,
especially for seniors with relatively high health care
costs;
Whereas in 2001, President George W. Bush created the
President's Commission to Strengthen Social Security
(referred to in this resolution as the ``Bush Social Security
Commission''), naming as Commission members only those who
advocated Social Security privatization, and mandating that
the proposals put forward by the Commission include
privatization of Social Security;
Whereas the Bush Social Security Commission produced Social
Security privatization proposals that required deep cuts in
Social Security benefits;
Whereas the Bush Social Security Commission's proposed
changes could reduce Social Security benefits to future
retirees by as much as 46 percent;
Whereas under the Bush Social Security Commission's
proposal, the cuts in Social Security benefits would apply to
all seniors, not just those seniors who choose to participate
in privatized accounts;
Whereas the cuts in Social Security benefits could be even
deeper if individuals do shift funds to privatized accounts;
Whereas privatization advocates attempt to justify cuts in
Social Security benefits by pointing to future projected
shortfalls in the Social Security trust fund, but diversion
of payroll tax revenues from the trust fund into privatized
accounts would substantially accelerate the date by which the
Social Security trust fund becomes insolvent;
Whereas in order to avoid accelerating the insolvency of
the Social Security trust fund, the Bush Social Security
Commission was forced to propose that the Federal Government
incur as much as $4,700,000,000,000 in Federal debt (in
today's dollars) by 2041;
Whereas in response to the Bush Social Security
Commission's report, 50 members of the Senate wrote to
President Bush, urging him to reject the Commission's
proposed cuts in Social Security benefits;
Whereas the President has not complied with the request of
the Senators and instead has reiterated his intention to move
toward the privatization of Social Security; and
Whereas the deep cuts in Social Security benefits proposed
by the Bush Social Security Commission could jeopardize the
financial security of millions of Americans: Now, therefore,
be it
Resolved, That it is the sense of the Senate that Congress
should reject Social Security privatization proposals,
including those that require deep cuts in Social Security
benefits, such as the proposals of President Bush's Social
Security Commission.
Mr. CORZINE. Mr. President, today, along with Senator Daschle,
Senator Baucus and Senator Durbin, I am submitting a resolution that
calls on the Congress to reject Social Security privatization plans,
including those that require deep cuts in guaranteed benefits, such as
the proposals by President Bush's Social Security Commission.
For nearly 70 years, Social Security has reflected the best of
America's values. Social Security promises Americans that if you work
hard, pay your taxes, and play by the rules, you will be able to retire
and live in dignity.
Social Security benefits are far from lavish. The average retiree
receives only about $900 a month. That doesn't go far in many parts of
the country--certainly not in New Jersey. Unfortunately, even the
benefits promised under current law are now at risk.
President Bush says he wants to move toward privatization. But what
he does not say is that shifting funds from the Social Security Trust
Fund into privatized accounts almost inevitably leads to deep cuts in
guaranteed benefits.
To appreciate the depth of the cuts that flow from privatization, one
need only consider the privatization plans developed by President
Bush's own Social Security Commission. That commission included only
proponents of privatization selected by President Bush, and it
developed privatization plans that call for deep benefits cuts.
According to the nonpartisan actuaries at the Social Security
Administration, those cuts would exceed 25 percent for some current
workers. In the future, seniors could face a 45 percent cut in
benefits.
The President likes to argue that privatization is about choice. But
there would be no choice about these cuts--they would harm every
senior. In fact, those who chose to participate in privatized accounts
would see their benefits cut even deeper.
That is why, in response to the Bush Commission's report, 50 members
of the Senate wrote to President Bush, urging him to reject the
Commission's proposed cuts in benefits. Unfortunately, we have yet to
receive a response.
Privatization advocates try to justify cuts in Social Security by
pointing to future projected shortfalls in the Trust Fund. But
diverting payroll taxes from the Trust Fund only makes matters worse,
and would substantially accelerate the date by which the Fund would
become insolvent. That is why privatization almost inevitably leads to
deep cuts in benefits.
It is critical that this issue be fully discussed now--before the
election. So I will be looking for an opportunity to bring this
resolution before the Senate before the end of the year. I hope we can
kill this radical idea before it has a chance to get off the ground.
We must never accept any plan that takes the security out of Social
Security.
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