Kerrey, Moynihan, McCain Propose Reform Commission

May 9, 2000

At a May 4 news conference, Sen. Bob Kerrey (D-NE), Sen. Daniel Patrick Moynihan (D-NY) and Sen. John McCain (R-AZ) introduced legislation to establish a bi-partisan commission to examine Social Security reform and propose solutions. The commission would be formed prior to the presidential election and make recommendations in February 2001, with legislation based on those recommendations to be voted on by the end of the year.

McCain said that "there's one thing that we know; this is not a complex issue. We know how much money is coming in and how much is going out and who's going to be eligible. And we know that sometime around 12, 13, 14 years from now, the system will go bankrupt. But more importantly than that is the sooner we address the problem, the easier it's going to be. The longer we wait, the more difficult it will be."

Sen. Moynihan said, "one of the reasons we're proposing this [is] we are so much closer to insolvency than anybody knows. By the year 2015, the revenue of the FICA tax, the payroll tax, will not meet the outlay of the program. And they will tell you, well, you know, there are, there's the trust fund which has the bonds. Well, yes, but you have to use general revenue to pay off these bonds. And suddenly, an insurance system disappears before your eyes. We are trying to preserve an insurance system which everybody has, is entitled to because they paid it, and it's been the most successful program of the century."

The proposed commission would be formed from twelve Members of Congress, evenly split between the two parties, plus the Social Security Commission (who would not vote).

Texas Gov. George W. Bush favors personal retirement accounts and stated over the weekend that reform should be bipartisan. In the past, however, his chief economic advisor has said that Bush would not pursue the use of a commission on Social Security.

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