[Congressional Record (Bound Edition), Volume 146 (2000), Part 5]
[House]
[Pages 6268-6269]
[From the U.S. Government Publishing Office, www.gpo.gov]



                            SOCIAL SECURITY

  The SPEAKER pro tempore (Mrs. Biggert). Under the Speaker's announced 
policy of January 19, 1999, the gentleman from Michigan (Mr. Smith) is 
recognized during morning hour debates for 5 minutes.
  Mr. SMITH of Michigan. Madam Speaker, this chart is on Social 
Security. I have been very interested and concerned about Social 
Security for the last 5 years. I have introduced three Social Security 
bills that have been scored by the actuaries of the Social Security 
Administration that would keep Social Security solvent, would keep it 
going to the next 75 years. So three bills over the last 5 years.
  I also chaired the bipartisan task force on Social Security where we 
were very successful. We have bipartisan agreement on 18 findings that 
moves us ahead.
  Last night, I was listening to television, and I heard Al Gore talk 
about his proposal to fix Social Security and criticize Governor George 
W. Bush's suggestion that we allow some of that money to be kept and 
invested by individuals. I was so concerned that I took an earlier 
flight so I could speak this noon on Social Security.
  I criticize Mr. Gore for suggesting that we do not have to do 
anything to fix Social Security. Chris Lehane, Mr. Gore's spokesman, 
says that one of the reasons Social Security has been so successful is 
that it depends on one generation to take care of another generation. 
When in fact there is no need to do anything right now, Mr. Gore 
suggests that we use the extra money coming in from Social Security. 
Look at this chart a minute. We have got a short-term, where there is 
more money coming in from Social Security taxes than is needed to pay 
out benefits. Mr. Gore suggests that we take some of this money, we 
borrow from this fund, and we use that money to pay down the debt, the 
so-called Wall Street debt.
  It is also so disconcerting that ABC, NBC, CBS pick up those press 
releases out of the White House that says we are going to pay down $180 
billion of debt this year, and that is good, we are moving in the right 
direction, but what is happening is we are borrowing the money from 
Social Security to pay down the Wall Street debt so the $5.7 trillion 
that we now have as a national debt continues to go up.
  Maybe an analogy is saying that Mr. Gore suggests that we take out 
one credit card and we use that credit card to pay off another credit 
card when there is no real money out there.
  I think this is the time in this presidential election year to 
discuss and debate how we are going to fix Social Security, how we are 
going to keep it there, not only for the existing retirees and the near 
retirees, but for future generations. It is the most important program 
that probably we have in government. It is the largest program in this 
country. It is the largest program in the world.
  What is happening is some people suggest, look, the United States is 
as good as its word. If it borrows the money, it is going to pay it 
back. Even if it paid it all back, it is only going to keep Social 
Security solvent until 2034.

[[Page 6269]]

But will the Federal Government pay that money back? Where is it going 
to come from? We are going to have to increase borrowing, cut other 
government programs, or increase taxes. That is where it is going to 
come from.
  As a demonstration of Federal Government's commitment, this Congress 
and the President, in 1977, when there was a problem of fewer dollars 
coming in than was needed to pay out benefits, what did they do? In 
1977, they increased taxes and reduced benefits. In 1983, again, we ran 
out of enough money to pay benefits, so, again, they reduced benefits 
and increased taxes.
  If we do nothing, I say to Mr. Gore, then taxes are going to increase 
up to 55 percent, increase in Social Security taxes for our kids. That 
is what the trustees of the Social Security Administration said. If we 
do not want to increase taxes, then we cut benefits by 33 percent.
  This is an appropriate time to discuss where we are going to go on 
Social Security to keep it solvent. If my colleagues look at the red 
area, how much we are going into the red over the years, the Social 
Security actuaries project that we are short $120 trillion. Remember, 
our annual budget here is $1.7 trillion. Over the next 75 years, we are 
short $120 trillion of there being less money coming in from the Social 
Security tax than we need to pay out the benefits that are promised.
  If we look at the possibility of getting real investment, then all we 
have got to do is beat a zero percent return. Some of the think tanks 
around town have projected that one is not even going to get back the 
money that one paid in. Some of the projections go as high as a 1.7 
percent return on the Social Security money that one pays into Social 
Security.
  Can the stock market do any better than that? The average for any 12-
year period since 1926 has been 3.7. The average for a retiree's 
lifetime has been up to a 7.88 percent return. We can do better than 
Social Security. Let us move ahead. Let us debate it. Let us discuss 
it. Let us not hide the problem under the rug.

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