Livingston Proposal on Social Security "Aims Too Low"

November 14, 1998

Incoming House Speaker Robert Livingston (R-LA) has announced that he will make Social Security a top legislative priority, and will introduce legislation to take the Social Security surplus "off budget." The bill will be HR1, the highest priority piece of legislation that the 106th Congress will consider. Following are observations on Livingston's announcement from Michael Tanner, Cato's director of health and welfare studies.

"This proposal is a step in the right direction, but it aims too low. We need to go beyond accounting changes to implement real reform of the troubled retirement system.

"Livingston is right to propose moving the system off-budget. Social Security's temporary surplus should not be allowed to hide Congress' failure to truly balance the budget. But that is not enough. As President Clinton has pointed out, Social Security is facing a looming financial crisis. If the Speaker wants to set a bold agenda for the 106th Congress, he will rally Americans behind proposals to 'take back' Social Security, allowing workers the opportunity to invest their Social Security taxes in private capital markets. By transforming Social Security into a system of individually owned, privately invested accounts, Speaker Livingston can remake the American political landscape."

2001 Index | 2000 Index | 1999 Index | 1998 Index