[Congressional Record Volume 153, Number 29 (Thursday, February 15, 2007)]
[Extensions of Remarks]
[Pages E370-E371]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   SOCIAL SECURITY GUARANTEE PLUS ACT

                                 ______
                                 

                             HON. RON LEWIS

                              of kentucky

                    in the house of representatives

                      Thursday, February 15, 2007

  Mr. LEWIS of Kentucky. Madam Speaker, I rise to inform my colleagues 
about legislation I have introduced today to preserve Social Security 
and pay full promised benefits to future

[[Page E371]]

retirees without raising payroll taxes or further depleting the trust 
funds.
  The facts are undeniable: demographics are driving Social Security's 
looming insolvency. Modem medicine is helping people live longer, and 
families are having fewer children. As a result, the number of seniors 
is growing faster than the number of workers supporting Social 
Security.
  According to the 2006 report of the Social Security Board of 
Trustees, the number of retirees receiving Social Security benefits 
will grow five times faster than the working population over the next 
10 years. Social Security tax revenue will fall short of benefit costs 
beginning in 2017. By 2040, Social Security revenues will be sufficient 
enough to finance only 74 percent of promised benefits. At that time, 
according to trustee estimates, benefits will have to be cut 25 
percent, or the payroll tax will have to be increased by 34 percent to 
pay full promised benefits.
  We must refocus our concern and reinvigorate our efforts to address 
the serious challenges Social Security programs face. This is not a 
Republican or Democrat issue, it's an American issue. The choices 
without reform are stark: massive benefit cuts, enormous deficits, or 
huge tax increases. We should not leave these problems for our children 
and grandchildren to solve.
  The legislation that I have proposed, the ``Social Security Guarantee 
Plus Act,'' initially proposed by former Congressman Clay Shaw and 
former Chairman Bill Archer in previous Congresses, would keep the 
Social Security safety net intact, ensuring full receipt of Social 
Security benefits for all current and future American workers.
  The Guarantee Plus plan establishes a voluntary program that would 
allow workers to receive a refundable income tax credit equal to 4 
percent of their annual earnings, up to $1,000, to invest in a tax-free 
retirement account. Instead of restructuring existing payroll taxes, 
general treasury revenues would be used to fund retirement accounts. 
Individual workers, not the government, would control how their account 
assets are invested to create growth. Real assets, not IOU's, would 
fund promised benefits.
  At retirement or when otherwise eligible, a 5 percent tax free lump 
sum payment would be paid directly to the worker. The balance would be 
used to help pay full guaranteed Social Security benefits. In order to 
preserve funds for retirement, account withdrawals would be prohibited 
until a worker becomes eligible for traditional Social Security 
benefits. Accounts would be inheritable and tax-free if a worker dies 
before reaching retirement.
  The Guarantee Plus plan incorporates three core principles: all 
workers are treated fairly; individuals own and control their own 
retirement funds; Social Security benefits are guaranteed in full to 
all Americans through the next 75 years and beyond without increasing 
taxes, lowering benefits or raising the retirement age.
  Because Social Security benefits are based on earnings, women are 
disadvantaged when they choose to stay home to raise their children. 
Longer life expectancies also make woman more likely to struggle with 
poverty in old age. The Guarantee Plus plan addresses this iniquity by 
enhancing benefits for widows, divorced spouses, and working mothers. 
These benefits would become immediately available.
  The plan would also eliminate the retirement earnings penalty for all 
workers age 62 and older and reduce the current Government Pension 
Offset that limits spouse and survivor benefits for certain government 
employees.
  The Social Security Administration's Office of the Actuary estimates 
that every borrowed dollar necessary to begin the program, in addition 
to accrued interest, would be repaid with 75 years, achieving permanent 
solvency. In sum, we would payoff the mortgage on Social Security while 
leaving workers with substantial account balances and generating 
surplus revenues for the Federal Government.
  Everyone agrees that the Social Security program is integral to the 
financial stability of millions of Americans who have left the 
workforce due to retirement or disability as well as those who are 
dependent upon survivor benefits following the death of a parent or 
spouse. We must put partisan politics aside and do what is best for 
today's seniors and tomorrow's retirees.
  Our recent success at passing sweeping measures to modernize welfare 
and worker pensions shows that effective reform is possible. In similar 
spirit, Congress needs to work together to explore every possible 
option to restore confidence in Social Security and ensure program 
solvency for generations to come.
  I believe the Social Security Guarantee Plus plan accomplishes this 
goal in the most comprehensive, fair, and cost-effective manner. I 
encourage my colleagues to consider their support for this bill as a 
step toward permanent preservation of the Social Security program.

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