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Congressman Don Young
Social Security Shell Game
Washington, D.C., Feb 18 -
In 2013 Social Security will begin to cash in bonds in the trust fund, essentially cashing in on the principal funds. At which point the government will have to raise the cash to redeem these bonds, by either raising taxes or borrowing from the public. Unfortunately, by 2032 all the bonds within the trust fund will be gone and Social Security will be insolvent.
The importance of this issue can be seen in the fact that the American people hear a new proposal every week that will ensure Social Security will be around for future generations. In fact, the President received a vigorous response during his State of the Union speech where he addressed several initiatives designed to preserve Social Security’s future solvency.
What the President failed to mention was that he was linking the current budget surplus and Social Security. The fact is that unless Congress cuts taxes or increases spending, an estimated 100 percent of the overall surplus is used to buy down the debt.
The President would like to devote most of the surplus cash to Medicare and Social Security, however, what he is really doing is dedicating 77 percent of the surplus funds to reducing the debt. Reducing the debt does not benefit Social Security.
While the President says he is engaged in ensuring that Social Security remains for my children and grandchildren, the President hasn’t said what measures he will take to ensure that the trust fund remain solvent after the principal has been spent. This leaves us questioning why the President hasn’t been forthcoming about how he will ensure that benefits are provided for beneficiaries.
What the President fails to tell us that what he really would like to do is add $2.8 trillion in newly issued bonds, essentially double counting the surplus. By adding new bonds to the Social Security Trust Fund he would increase the government debt and force Congress into raising the debt limit on the balanced budget. This of course would result in more debt for our children and grandchildren to pay off.
Preserving and protecting Social Security is not something that should be done like a shell game. The American people expect that the President and Congress will work together to ensure this vital program remains financially viable. That means working to find sensible measures to save Social Security-not playing shell games.
SOCIAL SECURITY SHELL GAME
by Congressman Don Young
From young to old, Americans across the country have spoken out about their concerns over retirement security, and the current lack of a viable solution to the Social Security dilemma. At issue is extending the Social Security Trust Fund’s solvency to the tune of $2.8 trillion. The Administration is playing a shell game with its proposal to either raise Americans taxes or come up with some alternative plan to pay for expected costs to the Social Security system.