Candidate Statements

Social Security Privatization

Brad Sherman (D)

Fighting to preserve the promise of Social Security for this and future generations is among the most important things I do in Congress.

As a CPA, I know the importance of planning today for tomorrow's financial needs.

Preserving Social Security

Opposing "Privatization" Schemes

I was a member of the Budget Committee that helped write and pass our nation's first balanced budget in decades. Now, instead of deficits as far as the eye can see, we are facing budget surpluses. We must use these surpluses to save Social Security first.
I am a cosponsor of HR 3207, the "Save the Social Security First Reserve Fund." I have also cosponsored HR 857, the " Social Security Preservation Act" to prohibit the federal government from borrowing from Social Security to balance our federal budget.
In the face of the coming retirement of the "baby boom" generation, some are suggesting that we abandon our 50-year promise and propose schemes to "privatize" Social Security. I oppose these "privatization" schemes.
Allowing people to "opt out" of the Social Security system and play the stock market can have diastrous consequences for those who are imprudent or simply unlucky.
Additionally, any move to an "every man for himself" plan would have huge transitional costs-- in order to pay for current retirees as well as create a whole new system for future retirees, we would have to radically raise taxes or drastically cut benefits. Neither option is acceptable.

Encouraging Private Savings

Social Security should be a floor, not a ceiling. I support tax deductions for IRA's 401Ks and similiar plans. This allows those who want to invest privately to do so--- without putting entire generations at risk.

Protecting Cost-of Living Increases

I oppose attempts to let Congress tamper wtih Cost-of-Living Adjustments based on the Consumer Price Index. Those decisions should be left in the hands of the experts and economists at the Bureau of Labor Statiatics. Those who rely on Social Security cannot afford to fall behind inflation. As a member of the Budget Committee, I fought attempts to allow Congress to tinker with the CPI and COLAs for political gain.