[Congressional Record (Bound Edition), Volume 149 (2003), Part 16]
[House]
[Pages 21561-21562]
[From the U.S. Government Publishing Office, www.gpo.gov]




                            SOCIAL SECURITY

  The SPEAKER pro tempore (Mr. King of Iowa). Under a previous order of 
the House, the gentleman from Michigan (Mr. Smith) is recognized for 5 
minutes.
  Mr. SMITH of Michigan. Mr. Speaker, I rise to address another serious 
security problem. It is retirement security. Let me read a quote from 
1994:
  ``Failing to take prompt action on Social Security will burden our 
children and our grandchildren with benefit cuts and crippling taxes.''
  That was part of my opening statement as chairman of the Task Force 
on Social Security in 1994. When I wrote this almost 10 years ago, I 
was simply acknowledging what was evident to the actuaries of Social 
Security. Because we know how many people are paying into Social 
Security, and we can estimate the cost of future benefits from what has 
been paid in, the looming insolvency of the program was very clear 
then. It is even more clear today. Yet a crisis that is imminent in the 
eyes of an actuary looks like a long way off to many politicians, and 
as a result Congress has ignored and delayed action on what is probably 
this country's most serious long-term financial challenge.
  In just 10 years, we will need $100 billion from other sources to 
make up $100 billion, that is 5 percent of what will be coming in 10 
years from now from the total income tax revenues, we are going to need 
that much in addition to what is coming in on Social Security and 
Medicare taxes to pay promised benefits. It has been frustrating at 
times, but we have worked for more than a decade trying to focus 
attention on fixing Social Security.
  I introduced my first Social Security bill back in 1994. In fact, I 
wrote it while I was still chairman of the Senate taxation committee in 
Michigan. Tomorrow, I will offer my sixth legislation that has been 
scored by the actuaries to keep Social Security solvent. The good news 
is, I think awareness has increased. There is a greater appreciation 
and an acknowledgment that Social Security is going broke. Today, most 
Members are aware of the problem, even if there is still reluctance to 
tackle it.
  President Bush's support in the 2000 campaign, I think, moved us a 
long ways toward a greater American understanding of the seriousness of 
the problem, and tomorrow I will introduce my bipartisan Retirement 
Security Act that has been scored by the Social Security actuaries to 
keep Social Security solvent and restore its tremendous support for 
retirees in the United States. Workers could voluntarily devote 2.5 
percent of their income for a start from their payroll taxes. It would 
be voluntary. And workers would own the money in the accounts, which 
can be put in well-diversified investments. In our bill, we guarantee 
that the individuals that opt for these personally-owned accounts will 
earn as much as those that opt not to go into that particular 
investment. The government would supplement the accounts of low-income 
workers to help build up those accounts for future retirement savings. 
People would continue to receive government benefits, as in the current 
system, as part of their retirement income, but those participating in 
the private account would have their government benefits reduced to 
reflect the money that goes into their private accounts. But, again, it 
would be insured.
  To ensure fairness for women, a married couple's account 
contributions would be divided equally between spouses. My bill also 
increases the widow's/widower's benefit to 110 percent of the higher 
earning spouse's benefit and would give retirement credits to spouses 
who stay at home to care for young children.
  In conclusion, there are some important costs to the bill which 
eliminates $10 billion in unfunded liabilities. It calls for a $900 
billion loan over the next 20 years from government to Social Security 
in addition to repaying the trust funds that have been borrowed from 
Social Security and this will be repaid after the program becomes 
solvent. It also slows down the increase in benefits for the highest 
earning retirees. It does not, however, change benefits for those who 
have already retired or are close to retirement.
  Action to preserve and strengthen Social Security is long overdue. By 
acting now, we can reduce the cost of restoring Social Security for our 
children and our grandchildren. By increasing the return earned on 
Social Security surpluses, we can make the transition to a better 
system cheaper and easier. The Retirement Security Act is my proposal 
along with my eight cosponsors to move forward.

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