[Congressional Record (Bound Edition), Volume 146 (2000), Part 9]
[Senate]
[Page 12239]
[From the U.S. Government Publishing Office, www.gpo.gov]



                            SOCIAL SECURITY

  Mr. THOMAS. Mr. President, I wish to talk about a conversation I 
heard yesterday on the Sunday talk shows. It is too bad that on the 
Sunday talk shows the issues are not more clearly defined.
  This talk show was on Social Security and options, which are clearly 
legitimate options. The options separate the points of view of the 
parties and the candidates. I am talking about taking a portion of the 
Social Security program, as it now exists for an individual, and 
putting it into his or her private account and investing it in the 
private sector in equities or in bonds or a combination of the two. The 
return stays with this person because it is their account.
  Out of the 12.5 percent that each of us pay--and each of these young 
people will pay in the first job they have, and if something does not 
happen by the time they are ready for benefits, there will be none. We 
have to make some changes.
  One of the changes we can make, of course, is to increase taxes. 
There is not a lot of enthusiasm for that. For many people, Social 
Security is the highest tax: 12.5 percent right off the top.
  The second change is we could reduce benefits. Not many people are 
interested in reducing benefits.
  The third change is to take those dollars that are put into the so-
called trust fund and invest them for a higher return. Under the law, 
those dollars can only be invested in Government securities which, in 
this case, is a very low return.
  We are talking about taking those same dollars that belong to you and 
to me and putting them in individual accounts. They can be invested, 
and the earnings would be part of that person's Social Security 
payment.
  Yesterday, the implication was that would be a part of it, and then 
we have to fix up Social Security and replace all the money that is put 
in these private accounts. That is not the fact. The fact is, they are 
still part of Social Security, but they are yours. You make a decision 
how they are invested, and then you get your 10 percent, as it always 
is, plus the return to the 2 percent on top of that, and that 
represents your benefits.
  The lady yesterday representing the Clinton administration indicated 
we would have to replace all those dollars and go ahead with Social 
Security as it is. That is just not the fact.
  This is an opportunity for us to increase the return, to ensure those 
dollars and those benefits will be there when the time comes for 
someone to receive them, and to do that without increasing taxes, 
without reducing benefits, but by simply taking advantage of the 
opportunity of a better return on the investment.
  A couple of Senators are going to be here shortly. In the meantime, I 
suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mrs. HUTCHISON. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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