Angelo Asks for Straight Talk on Social Security

August 13, 2003

"No one denies the importance of [Social Security] solvency," says Iowa state senator Jeff Angelo in a letter to the editor of the Des Moines Register. He writes that now, during the upcoming election, is the time for all candidates to make known their plan for ensuring the future of Social Security. In just a few short years, less painful reform options, such as those proposed by the Bush administration, will no longer be a viable solution to the impending crisis. Highlights of Angelo's letter, "Social Security Needs Fixing; Bush Has a Plan," follows:

"Millions of America's seniors rely on Social Security for part or all of their monthly income. Because of that, it's critical that those who want to lead our nation explain the path they would take to solve the impending financial crisis in Social Security.

"Consider the facts concerning the retirement of the baby-boom generation. According to the National Center for Policy Analysis: In 1940, there were 42 workers per retiree. Today the ratio is 3 to 1; by 2050 it will be 2 to 1. The burden on each individual worker will increase substantially, and we will no longer be able to keep our promises to retirees at current payroll-tax levels.

"By 2018, Social Security will spend more in benefits than it collects in taxes. By 2041, the program will have spent all the assets credited to the trust fund and taxes will have to rise by half or benefits cut by a third to make up the difference. So between 2018 and 2075, Social Security's unfunded liability (the total of all the annual deficits) is $24.2 trillion—12 times the size of this year's federal budget.

"The federal government can afford to pay Social Security benefits with no change in the law for the next 15 years. While those are gloomy numbers, the reality is that now is the time to begin reforming Social Security so our nation is not faced with the decisions of deep benefit cuts or dramatic tax increases.

"President Bush has proposed a voluntary program where workers could choose to invest a portion of their Social Security payroll taxes into a regulated private account. They would give up their right to collect Social Security, but a portion of their payroll taxes would continue supporting those on Social Security.

"This creates more private-sector wealth to support the system, reduces the number of people relying on Social Security in the future and allows those opting out to collect more than they would had they stayed in the system. A similar system is working elsewhere in the world, and it can work here.

"Today, Iowans have the privilege of hearing some of America's leading Democrats talk about leading our nation. Unfortunately, none is addressing the impending financial crisis in Social Security. They seem unwilling to talk about innovative private-sector solutions or the tough choices we face.

"Among the great issues of the day—terrorism, education and the economy—is the issue of Social Security solvency. Every politician talks about 'doing it for the children.' There's no bigger issue that will affect our children and grandchildren than Social Security reform."

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