Mr. Speaker, I thank the gentlewoman for yielding to me, and I thank her for her leadership on this issue. This is one of many times she has come to the floor and spoken on this very important issue that I think is important to generation…
Mr. Speaker, I thank the gentlewoman for yielding to me, and I thank her for her leadership on this issue.
This is one of many times she has come to the floor and spoken on this very important issue that I think is important to generation of Americans, and it is important that we focus on the facts and how we can strengthen Social Security for the long term. And the gentleman from Florida did a tremendous job in talking about a first step, I think a very appropriate step, in making sure that we preserve the Social Security surplus for Social Security reasons and benefits.
I did 15 or 20 town hall meetings so far this year on Social Security; and if there was one message I heard loud and clear, Mr. Speaker, from the people of
the Second District of Indiana it is: let us stop raiding the Social Security surplus. Let us stop spending it on everything from the Cowgirl Hall of Fame to the war in Iraq. Let us use that surplus for what it is there for, and that is simply to provide the benefits for Social Security beneficiaries in the future. And that is exactly what GROW accounts do. They simply stop the raid. I think facts matter, and with anything I think that we should understand the facts before we make decisions.
And I learned recently that there is going to be a group of people in my district office in South Bend, Indiana tomorrow, and they are going to demand that I take my name off as a cosponsor of the bill that creates GROW accounts. I am not going to take my name off of that bill because I think that their request is based on a misunderstanding of the facts, and I know that because they sent me a letter, or they are going to deliver to me a letter tomorrow, I think, but we got an advance copy, and some of the things they have stated in this letter are gross misstatements of the fact and I think mislead people as to what GROW accounts do and how they start to solve our Social Security problem.
The first misunderstanding is they say that ``rather than ensuring that American workers receive the benefits they have earned, this bill would divert payroll contributions to create private accounts and would fund these private accounts using the `surplus,' money which has already been earmarked to pay the baby boomers' Social Security benefits.''
Mr. Speaker, it is true that this bill would create personal accounts and those personal accounts will be funded by surplus Social Security money that goes into the system that is not needed for current beneficiaries. What is not true is that the surplus has been earmarked for baby boomers in the future. In fact, the opposite is true. The surplus is simply spent on everything that the government needs that is outside of Social Security benefits. So I think it is very important that we understand that the GROW account simply makes sure that we spend Social Security surplus money on Social Security purposes.
The second misunderstanding is they say: ``This plan would cut guaranteed benefits.'' There are two things wrong with that statement. One, there are no guaranteed benefits under Social Security as it is currently implemented. The Supreme Court has said that no one has a property right, no one has a right to your benefits. Congress can change the Social Security system at any time in the future and no one can make a claim for their benefits. So under the current Social Security plan, there are no guaranteed benefits.
But if we have GROW accounts, there is a guaranteed benefit because that becomes a personal asset. That becomes an asset with their name on it. It becomes a part of their estate. It becomes inheritable if they die before they can collect their benefits, and currently Social Security has none of those aspects and none of those benefits.
The third misunderstanding is: ``This plan would finance risky private accounts.'' Again, Mr. Speaker, it does fund personal accounts. It is a personal asset for individuals who are in the Social Security system. But they are not risky because these accounts would simply have one asset in them when they are created, and that is government-backed securities, government bonds, the safest investment in the world, and these are tradeable and marketable bonds that can be sold at a later time when people have their retirement needs, and they can use that for their retirement benefits.
So, Mr. Speaker, I do think that facts really matter in this debate because the consequences are very important to every generation of Americans.
We can talk more about these accounts and more about the Social Security situation overall, but again I want to thank my colleagues for being here tonight talking about this very important issue. And one of the things that I always want to encourage people to do is to share with us what they are for. The people coming to my office tomorrow are going to tell me what they are against. I would love to hear what their ideas on saving Social Security are. I would love to hear what they are for. I know that their colleagues are open minded and that we are willing to listen to any good idea to make sure that we permanently solve the problems that Social Security faces. So I hope that we can have some positive input from both sides of the aisle and all the American people because we need that to solve this problem.
Mr. Speaker, will the gentlewoman yield?
Mr. Speaker, the gentlewoman is exactly right. Congress has changed the Social Security system over time, and over 20 times in the past Congress has raised taxes on Social Security in payroll taxes into the system. And that has never solved the problem. And if we include raising the amount of payroll that is subject to the tax, it is something like 38 or 39 times we have raised the contribution to the system.
What we have to do is find a way to permanently solve the Social Security challenges that are really undeniable. As she said, the only thing guaranteed is a significant cut in benefits in 2041 or 2042 if we do nothing. So I think it is time that we find a way to permanently solve this problem. The GROW accounts are a great idea as a first step. They are not the total answer, but they are a first step to give people an ownership stake in Social Security, make sure that we use the surplus for what it is intended for, and that is Social Security benefits, stop raiding the surplus and begin to strengthen Social Security for the long term.
Mr. Speaker, I appreciate the gentlewoman bringing up that point. That is a consistent criticism of the GROW accounts, that they would increase the debt or the deficit; but in fact what they do is unmask or reveal the true budget deficit.
Today we have a Social Security surplus, which we have talked about. That money is used to pay for general government needs, and it reduces or masks the amount of money we really need to run government, because we are taking Social Security money and using it for general government purposes.
With GROW accounts implemented and enacted, we would stop doing that. We would stop using Social Security surplus money for anything except Social Security. The problem with that, the critics would say, is that we have to go find the money to fund general government somewhere else. So on paper it increases the deficit, when in fact it unmasks the deficit.
It is simply a matter of truth in accounting. It is being honest with the American people how much money we spend as a government and where the money comes from. Then we will be more accountable to the American people by not spending their Social Security money on things other than Social Security and being honest as to how much we need to spend or borrow to fund the general government needs.
Mr. Speaker, it is simply a matter of transparency and truth in accounting. Frankly, we need more of that in other parts of government, which we could spend several hours talking about. It is being honest with the American people, and I think it is one of the great benefits of GROW accounts.
Mr. Speaker, if the gentlewoman would yield further, just to put this into context, between 2006 and 2015, it is estimated that the surplus will be $790 billion that we would put into personal accounts for retirement needs for Social Security benefits versus spending it on general government purposes. So this is a lot of money that can be put aside now for Social Security benefits in the future. I think it is high time we start.