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Committee on Ways and Means For Immediate Release Mr. Daschle, Let's Put Aside Politics and Save Social Security WASHINGTON -- Chairman E. Clay Shaw, Jr. (R-FL) of the Social Security Subcommittee expressed the need for cooperation and measured dialogue in a letter today to Senate Majority Leader Tom Daschle (D-SD). The Honorable Thomas Daschle Dear Tom: Just two weeks ago, you said, “we need to get serious about retirement security." Having been encouraged by your bold statement, I am surprised and disappointed by your most recent remarks. On January 23rd, you said, “I don’t want to ‘Enron’ the people of the United States . . . I don’t want to destroy their Social Security system . . . I don’t want to destroy their ultimate ability to look with confidence at their retirement.” No plan to save Social Security would turn on the failure or success of any one company or industry or bear resemblance to the dilemma Enron employees now face. All voluntary account proposals ensure workers have safe, secure investment choices that represent a wide variety of businesses and industries. Some plans create a new minimum benefit; others, like my plan—H.R. 3497, ensure workers are not exposed to any individual investment risk at all. What would destroy workers’ confidence in receiving their promised Social Security benefits is a failure to take action to save Social Security. Without reform, future retirees would face dramatic benefit cuts after the trust funds are exhausted; otherwise, future workers would face payroll tax increases of almost 40%-50% just to continue funding full benefits. Proposals to save Social Security that include voluntary personal accounts would strengthen the safety net of Social Security by ensuring a stable and secure source of funding for the system well into the future. Also this past week, you said, “At least through 2008, we’re going to be using Social Security trust fund dollars to pay for that tax cut.” Misleading statements like this only serve to confuse the public. As you know, the only way to affect trust fund balances is to make changes to the law to alter the program’s revenues or outlays. Regardless of whether the general fund uses the Social Security surplus to reduce debt or fund other necessary government activities, the trust funds are credited with what they are due. That’s the law. The tax cut or expenses for the War on Terrorism or economic stimulus do not change the trust fund balances. Working together, we can look past the next election and legislate for the next generation. I hope that I can count on you to put aside politics so that we can save Social Security for our kids and grandkids. For more information on Chairman Shaw's Social Security Guarantee Plus Plan, please visit http://www.house.gov/shaw/ssindex.html |