[Congressional Record (Bound Edition), Volume 145 (1999), Part 3]
[Extensions of Remarks]
[Pages 3974-3975]
[From the U.S. Government Publishing Office, www.gpo.gov]




          THE INTRODUCTION OF THE NADLER SOCIAL SECURITY BILL

                                 ______
                                 

                          HON. JERROLD NADLER

                              of new york

                    in the house of representatives

                         Tuesday, March 9, 1999

  Mr. NADLER. Mr. Speaker, I am here today because, as the ongoing 
national dialogue attests, the Social Security system is at a 
crossroads. The decisions we make this Congress will have aftershocks 
that will be felt well into the second half of the 21st century. 
Concern for our children and our children's children demand that those 
decisions be made carefully, seriously, and compassionately--keeping in 
mind Social Security's historic commitments.
  Today, I am announcing the introduction of a comprehensive Social 
Security plan that will preserve the system while staying consistent 
with certain key values that have always provided the heart and soul of 
the nation's most popular social program: this plan does not raise the 
retirement age, it does not cut benefits, it does not raise tax rates, 
and it does not shift the risk onto individuals through individual 
private accounts funded by FICA taxes.
  These are not academic considerations. They are the guiding 
principles of a program that has risen literally millions of human 
beings out of the wrenching grip of poverty--poverty that for so long 
was too often synonymous with old age or disability. For over half a 
century, they have been part of what defines Americans as a people.
  President Clinton has already put forth an excellent framework to 
strengthen Social Security and Medicare and increase private savings, 
which keeps the system solvent until 2055. My plan builds on this firm 
foundation, but takes an extra step to completely eliminate the 
projected 2.19% actuarial deficit. According to the Social Security 
Actuaries, my plan brings the Social Security System into long-term 
actuarial balance for the foreseeable future--at least 75 years.
  Briefly, here's how we do it. My plan implements the President's 
proposal to authorize the transfer of 62% of the projected budget 
surplus to the Social Security Trust Fund for a period of 15 years. It 
creates an Independent Social Security Investment Oversight Board that 
is authorized to hire private managers to invest a higher, though still 
prudent, portion of the Social Security surplus into index funds. And 
it increases--and then indexes--the cap on taxable wages, without 
removing the cap altogether. Currently, 93% of wage earners earn less 
than the cap, and will be totally unaffected. Under current law, less 
than 85% of all wages is subject to FICA contributions; this has 
slipped in recent years from the historic 90% due to the dramatic rise 
in disparity of wages. Raising the cap will restore the historic level, 
while affecting only the richest 7% of the population.
  These steps will ensure the solvency of Social Security for at least 
75 years, while ensuring the guaranteed benefits Social Security 
provides to seniors, individuals with disabilities, widows, widowers, 
and children. And--I can not say this often enough--it does so without 
raising the retirement age, without cutting benefits, without raising 
tax rates, and

[[Page 3975]]

without shifting the risk onto the backs of individuals. This is 
meaningful, responsible legislation, and I intend to do my best to make 
sure my colleagues give it the hearing it deserves.

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