Committee on Ways and Means
Subcommittee on Social Security

For Immediate Release
Contact: Press Office 202-225-8933
April 19, 2002

Democratic Scare Tactic Exposed by Expert

Chief Social Security Actuary Confirms Social Security NOT Affected by Tax Cut

WASHINGTON -- On April 18th, the Social Security Administration's Chief Actuary released a memo stating that making tax cuts permanent would not impact Social Security's ability to pay benefits to seniors today or in the future.

Mr. Shaw, Chairman of the Subcommittee on Social Security, said, “The Actuary’s Memo exposes the Democrats’ scare tactic that making tax relief permanent would hurt Social Security. Tax relief will help grow the economy, while fully protecting the Social Security Trust Funds and ensuring every senior will continue to receive their full promised benefits. His memo makes it perfectly clear that Democrats are shamelessly lying to seniors about Social Security.”

Summary of the Social Security Chief Actuary’s Memo:
  • Ways and Means Chairman Thomas’ amendment to H.R. 586 makes permanent the tax cuts enacted in 2001. The legislation includes a provision crediting the Social Security and Medicare Trust Funds as if the Economic Growth and Tax Relief Reconciliation Act of 2001, including extension of tax relief beyond 2010, had never been enacted.
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  • Mr. Thomas’ amendment would not affect Social Security’s long-term financial health. Instead, for tax years 2002-2010, the legislation would actually increase revenue to the Social Security Trust Funds.

    • Click on the link a copy of the memo.

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