FOR IMMEDIATE RELEASE, Contact: (202) 225-9263
January 26, 1999
No. SS-1
Congressman E. Clay Shaw, Jr., (R-FL), Chairman, Subcommittee on Social
Security of the Committee on Ways and Means, today announced that the
Subcommittee will hold a hearing series on impacts of the current Social
Security system. The first hearing day in this series will focus on the impact
of the current system on today's children as they take their place in the
workforce and ultimately collect retirement benefits. The first hearing
day will take place on Tuesday, February 2, 1999, in the main
Committee hearing room, 1100 Longworth House Office Building, beginning at 3:00 p.m. Subsequent hearing days will be announced
separately.
Oral testimony at the first hearing day on impacts on children will be heard from invited witnesses only. Witnesses will include program scholars, policy experts, and other informed citizens. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.
Other hearing days are expected to focus on improving current protections for women, reducing poverty and protecting minorities and low-wage workers, and ensuring protections for survivors and individuals with disabilities. Further details will be released in subsequent announcements.
BACKGROUND:
Despite its remarkable success in combating poverty among the elderly, Social Security faces increasing hurdles in paying promised benefits in the coming years. As Social Security's Trustees stated in their April 1998 report, "Beginning with the year 2013, the tax income projected under present law is expected to be insufficient to cover program expenditures." By the year 2032, when the Trust Funds are projected to be depleted, tax collections will cover only 72 percent of benefit obligations. If changes are delayed until the year 2032, payroll tax hikes of 45 percent or benefit cuts of 25 percent or more would be required to maintain solvency. The burden could fall on younger workers, including today's children, who could face payroll tax increases or benefit reductions. Other undesirable effects on this group could include higher interest rates, fewer opportunities for savings, and lower returns on investments. Similar effects could also result from the transition to a reformed Social Security system.
In announcing the hearing, Chairman Shaw stated: "We need to examine closely how reforming the Social Security system affects not only current workers and retirees, but also our children and grandchildren. Leaving them a Social Security program that offers a lifetime of high taxes and low benefits is an unacceptable heritage. We must find a better way."
FOCUS OF THE HEARING:
The first hearing day will focus on how today's children are expected to fare under the current Social Security system. Witnesses are expected to discuss taxes and interest rates that today's children may face as adults, including trends on rising taxes as a share of personal income. In addition, witnesses will discuss benefits today's and tomorrow's children can expect when they retire, and the implications of high taxes and low savings for Social Security reform.
DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:
Any person or organization wishing to submit a written statement for the printed record of the hearing should submit six (6) single-spaced copies of their statement, along with an IBM compatible 3.5-inch diskette in WordPerfect 5.1 format, with their name, address, and hearing date noted on a label, by the close of business, Tuesday, February 16, 1999, to A.L. Singleton, Chief of Staff, Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office Building, Washington, D.C. 20515. If those filing written statements wish to have their statements distributed to the press and interested public at the hearing, they may deliver 200 additional copies for this purpose to the Subcommittee on Social Security office, room B-316 Rayburn House Office Building, by close of business the day before the hearing.
FORMATTING REQUIREMENTS:
Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.
1. All statements and any accompanying exhibits for printing must be submitted on an IBM compatible 3.5-inch diskette in WordPerfect 5.1 format, typed in single space and may not exceed a total of 10 pages including attachments. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.
2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.
3. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments by the Committee, must include on his statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.
4. A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers where the witness or the designated representative may be reached. This supplemental sheet will not be included in the printed record.
The above restrictions and limitations apply only to material being submitted for printing. Statements and exhibits or supplementary material submitted solely for distribution to the Members, the press, and the public during the course of a public hearing may be submitted in other forms.
The Committee seeks to make its facilities accessible to
persons with disabilities. If you are in need of special accommodations, please
call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business
days notice is requested). Questions with regard to special accommodation needs
in general (including availability of Committee materials in alternative
formats) may be directed to the Committee as noted above.