Mike Simpson (R)
I’m in favor of Social Security reform that would allow workers to save a portion of their payroll taxes in a personal retirement account.
I am working to fulfill the promises made to all Americans in the current Social Security system and remain committed to protecting the Social Security Trust Fund. I believe that after a lifetime of working and paying taxes, our nation’s seniors should know that they will receive full benefits when they retire.
For the first time in a generation, Congress stopped the federal government’s raid on Social Security. Protecting the entire Social Security surplus will ensure that not one dime of Social Security money is squandered on other government programs, making this the second year in a row Republicans have protected Social Security surpluses using the revolutionary “lock box” concept.
However, the current pay-as-you-go system is falling far short of its intended goal. According to the 2000 report of the Social Security system’s Board of Trustees, in 2015 the Social Security system will begin to run a deficit. In other words, spending on benefits will exceed revenues. By 2037 the Social Security Trust Fund will be bankrupt. To maintain the current system either payroll taxes must be increased or benefits decreased. Neither of these options are acceptable to me. While many do not agree on the appropriate steps to reform the Social Security system, most agree that the current system must be restructured and modernized to secure the future of Social Security.
To improve Social Security and insure that it is available to future generations, many proposals to create individual retirement accounts have surfaced that would allow individuals, not Washington politicians, to control their retirement security. Until recent years, a typical retiree could expect to receive more in benefits than he paid into Social Security. However, because Social Security tax rates have increased over the years and the age for full benefits is scheduled to rise, it is becoming increasingly apparent that Social Security will be less of a good deal for future recipients. Personal savings accounts could offset Social Security’s declining value by providing higher returns and greater benefits. Furthermore, recent studies suggest that personal accounts would greatly benefit low-wage workers and minorities. Although some are concerned these potential reforms might include reducing current benefits, no credible proposal includes such a provision.
I am in the process of evaluating all proposals that have been introduced to save and improve the Social Security system. However, I do not support President Clinton’s plan to directly invest the Social Security surplus in the stock market. The federal government should not be in the business of investing in private markets.