[Congressional Record (Bound Edition), Volume 147 (2001), Part 17]
[Extensions of Remarks]
[Pages 24552-24553]
[From the U.S. Government Publishing Office, www.gpo.gov]



             KEEPING THE SOCIAL SECURITY PROMISE INITIATIVE

                                 ______
                                 

                         HON. E. CLAY SHAW, JR.

                               of florida

                    in the house of representatives

                       Thursday, December 6, 2001

  Mr. SHAW. Mr. Speaker, the success of Social Security in reducing 
poverty among the elderly and providing essential income security to 
America's workers and their families is well known. Without Social 
Security, nearly half of our seniors would live in poverty. Yet Social 
Security faces significant financial challenge ahead. Unless we 
modernize the program's Depression-era financial structure, program 
income will not cover the full cost of paying promised benefits soon 
after the baby-boomers begin retiring.
  Today we must make clear to every American that as we determine the 
best way to save Social Security for our kids and grandkids, we will 
not place undue burdens on today's retirees and workers by reducing 
benefits or increasing taxes.
  Social Security provides at least half of retirement income for over 
two-thirds of seniors and 100 percent of income for almost 1 in 5 
seniors. Reducing Social Security benefits would have serious 
consequences for the majority of seniors and would increase their 
number in poverty, which is why we must find ways to strengthen Social 
Security without cutting benefits.
  Social Security is also one of the largest financial obligations of 
many families. For over three-fourths of American families, the payroll 
tax is their largest tax liability. Increasing this tax burden would 
hit low- and middle-income families the hardest, In addition, it would 
reduce the already low rates of return on these contributions that 
workers may expect. So we

[[Page 24553]]

must find ways to strengthen Social Security without increasing taxes.
  As we debate how to strengthen Social Security, we must also keep in 
mind the obstacles women face in ensuring financial security for 
themselves and their families in the event of retirement, disability or 
death. Social Security plays an essential role in providing income 
security for women, without which over half would live in poverty. As 
we consider program improvements, we must not consider reducing the 
benefits or cost-of-living increases that are so important to women.
  Social Security also plays a critical role in providing financial 
security for minorities. African Americans are more likely to receive 
disability benefits. Since their life expectancy is shorter than 
average, survivor benefits are also important. Also, about \2/3\s of 
African Americans and about 3 out of 5 Hispanic seniors would have 
income below poverty without Social Security. As we consider changes to 
the program, we must not reduce the benefits that are vital to 
preventing poverty among minorities.
  As we protect Social Security for those who rely on it the most, we 
must also work to ensure Social Security is fair to all generations. 
Our kids and grandkids need us to find a way to improve the low rates 
of return they will receive from Social Security. For example, a single 
man who is 31 years old today and earns average wages can expect a rate 
of return on his contributions of only a little more than 1 percent, 
and kids born today can expect even less. We cannot, in fairness, allow 
this to continue.
  The President's bipartisan Commission to Strengthen Social Security 
has talked about the unique needs of women and minorities, as well as 
the system's low rates of return in its Interim Report and throughout 
its meetings. Soon, the Commission will recommend several options for 
modernizing and strengthening Social Security. It's the beginning of a 
long road to make American's most important income security program 
secure far into the future.
  That road will lead here to the Congress where the first and the 
final decisions will be made on this critical issue. My hope is those 
decisions will be bipartisan from the beginning, because that is the 
environment that the Social Security debate deserves. So let us begin 
today, as Congress first voices its views, and let that voice be a 
bipartisan one.
  Mr. Speaker, it is for these reasons that I encourage all Members on 
both sides of the aisle to co-sponsor this critically important 
resolution. We must act now to assure Americans that any plan for 
saving Social Security will guarantee current law promised benefits, 
including cost-of-living adjustments, for current and future retirees 
without increasing taxes. Our children, our grandchildren, and future 
generations deserve no less.

                          ____________________