Chris Chocola (R)
The dual problem of a low rate of return and the impending financial crisis of Social Security cannot be solved within the context of the current system. It is clear that there is an immediate need for Social Security reform.
The low rate of return in Social Security makes payments into the system a terrible investment choice. For example, an average-earning single male born after 1966 can expect to receive a rate of return after inflation of less than one-half of 1 percent on a lifetime of Social Security retirement taxes that he pays. That is simply unacceptable.
At the same time, even the best estimates for how long Social Security can last indicate that bankruptcy of the system will occur during the 2030s. Now is the time for Members of Congress to act. Each day that passes makes it more difficult to address this very serious issue.
As a Member of Congress, I am committed to reform that contains the following necessary provisions:
- Any reform must contain an ironclad commitment to pay specified benefits to current retirees and those close to retirement.
- Congress should require the Social Security Administration to provide rate-of-return information to all workers so that comparisons can be made.
- Individuals must be allowed to invest at least some of their Social Security taxes into private accounts.
- We must make the "Trust Fund" from which Social Security is drawn off-limits to the spending habits of politicians.
These basic principles will allow us to protect those Americans who have come to depend on the current system while offering greater promise for younger Americans who will be able to receive much greater returns on their lifetime of payroll taxes.
I remain convinced that real Social Security reform could lead to the greatest expansion of prosperity for working families that America has ever seen.