[Congressional Record (Bound Edition), Volume 145 (1999), Part 4]
[Extensions of Remarks]
[Page 5021]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 5021]]
             CONGRESSIONAL RECORD 

                United States
                 of America



March 18, 1999


                          EXTENSIONS OF REMARKS

 CONSTITUTIONAL AMENDMENT TO REMOVE THE SOCIAL SECURITY TRUST FUND AND 
                          MEDICARE OFF-BUDGET

                                 ______
                                 

                      HON. JAMES A. TRAFICANT, JR.

                                of ohio

                    in the house of representatives

                        Thursday, March 18, 1999

  Mr. TRAFICANT. Mr. Speaker, over the years, the Federal Government 
has raided the Social Security trust fund and Medicare and diverted the 
money earmarked for retirement and medical benefits to a host of other 
programs. This would be bad enough if Social Security faced no 
financial crisis. But the program is projected to start running cash-
flow shortages around 2013, which makes the misuse of the trust fund 
unconscionable. I have recently introduced legislation calling for a 
constitutional amendment to remove the Social Security trust fund and 
Medicare off-budget. I encourage each of my colleagues to support this 
measure.
  Supporters of the Social Security accounting system claim the trust 
fund is in fine shape, storing the surpluses in a massive fund that 
will ensure that benefit checks keep flowing until 2032. The truth is 
when Social Security's costs exceed tax receipts, the Government will 
have to raise taxes and/or borrow more money to help pay benefits.
  Since 1983, Social Security has collected more in taxes than it 
spends on benefits and other costs. This year, the payroll tax surplus 
will total about $52 billion. By 2007, the cumulative surplus is 
estimated to be $435 billion.
  In the past, these funds have been spent on everything from defense 
to welfare. In return, the trust fund has been issued nonmarketable 
Treasury bonds, which are merely promises to repay the money with 
interest at a later date in time. In short, IOU's from the Government 
to itself. To date, the IOU's in the trust fund total over $800 
billion.
  The best and only way to shield the Social Security and Medicare 
trust funds from spending raids is to exclude their funds from Federal 
budget calculations. Currently, several bills have been introduced that 
would do just that. However, none of those bills call for amending the 
U.S. Constitution to ensure that raiding the fund is impossible.
  The fundamental goal of the Social Security and Medicare programs is 
ultimately to guarantee savings and medical coverage for retirees. The 
Federal Government has made a contract with the American people. Let's 
show that we are serious about addressing the retirement system's long 
term solvency problem. Again, I urge each member to support this 
constitutional amendment.

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