[Congressional Record Volume 151, Number 14 (Thursday, February 10, 2005)]
[Senate]
[Pages S1222-S1223]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            SOCIAL SECURITY

  Mr. DURBIN. Madam President, first I salute my colleague from Utah. I 
agree completely with his conclusion--completely. We need to get 
together on a bipartisan basis and talk about the future of Social 
Security. That should be the starting point.
  Unfortunately, it is not the starting point. The starting point is a 
proposal by the administration that we create this privatization of 
Social Security. That is not a good starting point. We should be able 
to come together and agree on some facts. The facts are fairly obvious. 
They have been certified by the General Accounting Office and the 
Congressional Budget Office. They differ a little bit from what was 
just said.
  I was in Congress in 1983. We looked at Social Security and said we 
have a serious, immediate crisis: If we do not do something, and do it 
now, we will find ourselves in a position where we will not be able to 
meet our promises to all the retirees who paid into Social Security 
their entire working lives.
  President Ronald Reagan, a Republican President, reached across the 
aisle to the Speaker of the House of Representatives, Tip O'Neill, a 
leading Democrat, and said: Can't we find a bipartisan way to deal with 
the most popular and important social program in America? Tip O'Neill 
said: We have to.
  They created a commission with Alan Greenspan as the Chairman. They 
brought real bipartisanship to the Commission. They did not try to load 
it one way or the other which, unfortunately, has happened many times 
when it comes to Social Security. This Commission came up with a list 
of suggestions to Congress. They said: If you do these things, Social 
Security will have a long life. The baby boomers whom we know will 
retire after the turn of this century, we will be able to take care of 
them.
  Some of the things they proposed were controversial: One, increase 
the retirement age to the age of 67 over a period of years; there were 
suggestions of taxing Social Security benefits for higher income 
retirees; there were cuts in benefits; there were increases in payroll 
taxes. It was a long list, but each of the proposals in and of itself 
was not that extreme or radical. When it was all said and done, on a 
bipartisan basis, Congress enacted that law, changed Social Security.
  Let me tell you what we bought for the political courage of President 
Ronald Reagan and Speaker Tip O'Neill in 1983. What we bought was, 
literally, 59 years of solvency for Social Security. We came together 
and solved the problem.
  There are people ever since who have been carping about and 
criticizing the 1983 bipartisan approach, but I am glad I voted for it. 
I am glad because I can stand and face those retiring and say we faced 
the problem and we solved the problem.
  Frankly, that is what we have to acknowledge today. The future 
problems are, in fact, long-term future problems for Social Security. 
What we know now is obvious and has been certified and found to be 
true; that is, untouched, unchanged, without a single amendment to the 
Social Security law, no changes whatsoever, Social Security will make 
every payment to every retiree, with a cost-of-living adjustment, every 
month, every year, until 2042--according to the Congressional Budget 
Office, 2052. So for 37 years, Social Security is intact, solid, 
performing, and solvent. Some say it is beyond that. Some say at the 
end of 47 years we will reach a point where we will not be able to meet 
every obligation.
  Think of that. There is not a single program in our Federal 
Government today that we can say with any degree of certainty will be 
here 3 years from now. We can say with certainty, under the current 
law, Social Security will be there 37 years from now making 
every single promised payment.

  What happens after 37 years? It is true, we will have taken the 
surplus in Social Security and spent it down. And then we look at the 
receipts coming in and the interest earned and some estimate we can 
only pay 70 to 80 percent of our Social Security obligation. Now that 
is a challenge. How do we make up the difference? How do we make up the 
difference of the 20 to 30 percent that needs to be made up in Social 
Security? It is a problem that could be 40 years away. Today, if we sat 
down and made bipartisan, commonsense suggestions for changes in Social 
Security, much as we did in 1983, we can come up with a reasonable 
solution. Instead, what has the administration proposed? The President 
has come forward and said: We have to change Social Security as you 
know it. The program that has served America for almost 70 years, this 
program, we should change dramatically.
  So we asked the President, What do you have in mind? He says people 
should be able to take part of the money they are currently putting 
into payroll taxes and put it into private or personal accounts. That 
is appealing to some people because they think they would rather invest 
it in a mutual fund because they think they can make more money than 
the Social Security Administration can make. Other people say, well, 
what if you invest it in the mutual fund and it does not make as much 
money as in Social Security? Isn't there a risk involved?
  There certainly is.
  And then there are equally important questions. If you are going to 
take this money out of Social Security that was supposed to go toward 
paying current retirees, who will make up the difference? The President 
does not answer the question. The budget of the President does not 
answer the question. And in comes a memo from the White House which 
projects one of their solutions to Social Security is to change the way 
benefits are calculated. Currently, the formula is based on a wage 
index. It is based on the increase in wages. The White House memo says 
we ought to base it on the prices index, the increases in the cost of 
living. It does not sound like much, but it is a substantial change.
  As we play out this White House suggestion, what we find is alarming. 
What the White House memo proposed would lead to a 40-percent decrease 
in Social Security benefits. So we step back and say, wait a minute. If 
we do nothing in the year 2042 we can see a 20- to 30-percent decrease 
in our payments in Social Security. But if we buy into the President's 
approach we know we will see a 40-percent decrease. How can that be a 
good solution? The President's plan does not make Social Security any 
stronger. The President's plan makes Social Security even weaker.
  Then there is the kicker, the one thing that the administration does 
not want to talk about. This administration says their budget is 
focused on taming the budget deficit. I have to tell the President 
quite honestly, if you do not include in your budget the cost of the 
Iraq war, and you do not include in your budget the cost of privatizing 
Social Security, it is not complete, it is not an honest budget. We 
know in a period of the first 10 years we could have anywhere from $750 
billion to $2 trillion added to our national debt. So you say to the 
President, How are you going do make up that difference, that you will 
take the money out of Social Security for private accounts and create 
that additional national debt? How are you going to pay for that?
  Well, we will add it to the debt of America. For all the young 
people, the

[[Page S1223]]

pages that have been referred to in the Senate who are now becoming the 
object of many of our speeches, I don't think we are doing any favors 
by creating private accounts and saying, incidentally, here is a $2 
trillion debt, a little mortgage for you to consider. Do not forget 
about your student loans and getting married and buying that first car 
and buying that home; here is a little debt from Uncle Sam that is part 
of the President's proposal.
  When I listen to the President's privatization approach, I have to 
say there are several aspects that trouble me. First, this is not a 
crisis. We are not going to be in dire emergency circumstances in 2008. 
According to the Congressional Budget Office, almost 50 years from now 
Social Security is solvent. Social Security is making every single 
payment. Yes, we have a challenge beyond that. Secondly, the 
President's plan does not make Social Security stronger, it makes it 
weaker. And third, if this is such an obvious answer, why won't the 
President include this in his budget? You cannot take a plan seriously 
if the President does not put it in his budget.

  I will yield to the Senator from Utah for a question.
  Mr. BENNETT. Madam President, the Senator from Illinois began by 
saying that the facts were different than those I had outlined. I would 
ask him to tell me where my facts are wrong. He referred to the GAO and 
the CBO, all of which are fully aware of the facts I quoted, and all of 
which, to my understanding, endorsed the facts I quoted. So I would 
like to know where factually I was in error.
  Mr. DURBIN. I thank the Senator from Utah. I am afraid I did not hear 
his exact words, but he referred to the year 2008 as being a critical 
year.
  Mr. BENNETT. That is correct.
  Mr. DURBIN. As I understand it, we are currently collecting more from 
our workers across America for Social Security than we currently need 
to pay out to retirees. This has been the case since the mid-1980s 
because we saw this big tsunami of the baby boom generation coming at 
Social Security. This year, we may be collecting as much as twice the 
amount we need to pay the Social Security retirees, building up this 
surplus.
  So to suggest we have this terrible situation today where we cannot 
meet the obligations of Social Security, or that we are going to have 
it in 2008, or that we are going to have it in 2018 is wrong. By all of 
the Government agencies mentioned by the Senator from Utah, we are 
going to make every single payment in Social Security for 37 years, 
maybe 47 years. There is no crisis because we prepared for this. It is 
as if we understood in a family situation that we are not going to earn 
enough money in the outyears to make a go of it, so we save money and 
take it from our savings account for those lean years. That is what we 
are doing for Social Security.
  To suggest this is a crisis we did not anticipate, I was here when we 
did anticipate it. President Reagan and Tip O'Neill, in anticipation of 
it, came up with a good, bipartisan approach.
  I yield to the Senator from Utah for another question.
  Mr. BENNETT. Madam President, is the Senator from Illinois aware of 
the fact that the Comptroller General of the United States, who runs 
GAO, has used the 2008 figure because the 2008 date is the date the 
baby boomers start to retire? Is the Senator from Illinois aware of the 
fact that I did not say there is a looming crisis that hits us in 2008, 
that what I said was the pressure on the Social Security system will 
begin in 2008 and will build from that date to the point that 
ultimately $1.5 trillion will have to be raised to fill in the hole in 
the trust fund, once we cross the line where the amount coming in does 
not meet the amount going out, and that the 2008 figure is the 
beginning of the crisis? By no means did I imply or state that 2008 was 
indeed a crisis point.
  Mr. DURBIN. Madam President, reclaiming my time, let me concede to 
the Senator from Utah, if I misstated his position, I apologize. I do 
want to make it clear, though, that I sincerely disagree with your 
conclusion. To suggest we are facing a crisis in 2008 is to suggest we 
did not anticipate what will happen in 2008, and that is plain wrong.
  In 1983, we anticipated the baby boomer generation, larger numbers of 
retirees, and we did something about it because we made changes in the 
law. Because we are prepared for the baby boomers, we will not be in 
crisis in 2008. We will have the money to pay every single baby boomer 
every penny promised.
  That is the point many on the other side of the aisle want to 
overlook. They want to overlook what we did in 1983. Instead, they 
should look to that as a model for what we should do in 2005.
  If we want to do something for Social Security, let's do it on a 
bipartisan basis.
  Mrs. MURRAY. Madam President, will the Senator from Illinois yield 
for a question?
  Mr. DURBIN. Madam President, before I yield, I would ask the 
Presiding Officer, how much time is remaining in morning business on 
our side?
  The PRESIDING OFFICER. There is 15 minutes 45 seconds remaining.
  Mr. DURBIN. Madam President, I will make a statement that will take 
about 7 or 8 minutes on Medicare prescription drugs. Then I will yield 
the remainder of the time to the Senator from Washington.
  Mrs. MURRAY. Madam President, that would be great. Can I ask the 
Senator to yield for one question on Social Security?
  Mr. DURBIN. I am happy to yield to the Senator for one question.
  Mrs. MURRAY. Madam President, I listened carefully to the discussion 
of the Senator from Illinois on Social Security, and I am curious, 
because I heard the President say if you are 55 or older you are fine, 
you will be OK under his new plan. He is targeting it to everybody 
else. But as I listened to the Senator talk about the fact that money 
would be taken out of the payroll tax, and we also would be increasing 
the debt by substantial amounts, do you think someone who is 55 today 
is going to be OK under this plan 10 years from now when they retire 
and money has been taken out of the payroll tax?
  Mr. DURBIN. Madam President, in response to the question of the 
Senator from Washington, I obviously cannot answer that because no one 
knows what this privatization plan would do exactly. It certainly is 
not healthy for the Social Security system to see payroll taxes that 
had been anticipated and dedicated to paying retirees being removed and 
put into private investments with the risk attached to them. So I do 
not think there is any certainty for any retiree if the President 
cannot come up with more details on what he plans to do. I, for one, 
think the President's plan weakens Social Security and does not 
strengthen it.
  (The remarks of Mr. Durbin and Mrs. Murray pertaining to the 
introduction of S. 341 are printed in today's Record under ``Statements 
on Introduced Bills and Joint Resolutions.'')
  The PRESIDING OFFICER. The Senator from Washington.

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