|
Meeting is Local Example of the 235 Town Halls Being Held by House Democrats Around Country
FOR IMMEDIATE RELEASE:
Tuesday, February 22, 2005
CHARLES CTY, MD – U.S. Representative Steny H. Hoyer (D-MD) today hosted a Town Hall meeting with students from the College of Southern Maryland in La Plata to discuss strengthening Social Security and plans being proposed by the Bush Administration to privatize Social Security. Congressman Hoyer’s Town Hall Meeting was part of an effort by House Democrats, who are holding 235 Town Hall meetings across the country in the coming weeks, to provide their constituents with the facts about Social Security. Hans Riemer, Washington Director of Rock the Vote, a non-profit organization dedicated to increasing political participation among young people, also participated in today’s meeting.
“The Social Security Act was passed in 1935 because the federal government sought to provide basic economic security that families could rely on in times of need. Since then Social Security has meant independence for generations of Americans. Without it, more than 50 percent of our seniors would be living in poverty. It was never envisioned to be the sole source of senior’s retirement funds, but without it, those who rely on it completely, often through no fault of their own, would have no safety net.
“Social Security is not in an immediate crisis – there are long-term issues that need to be addressed, but the trust fund is strong.
“Because Democrats worked together with President Reagan in 1983 to strengthen Social Security, today the trust fund has roughly $1.7 trillion in reserves and can provide full benefits for nearly 50 years. Even with no changes, there are enough funds to pay nearly 80 percent of benefits after 2052.
“Democrats want to get that back up to 100 percent, so there is a challenge, but not a crisis. And we have the time, and should use it to do it right.
“As baby boomers approach retirement, it is projected that in about 15 years, more benefits will be paid out of the trust fund than revenues will be received. But the trust fund will not be bankrupt then, because of the reserves and interest. Private accounts put more pressure on the trust fund because they would divert $1.4 trillion from the trust fund in first 10 years and $5 trillion over twenty years, just to pay to get them started. This weakens Social Security, threatening benefits for today’s seniors, disabled workers and survivors.
“In order to pay for the privatization plan, the government would need to sell nearly $5 trillion over 20 years in new treasury bonds, mainly to China, Japan and other foreign countries who are buying most of the new debt we issue. Adding to our national debt hurts our economy and passes costs on to future generations.
“The President has admitted that his private accounts won’t solve the long-term solvency issues that face the trust fund. To do that, his plan would cut benefits more than 40 percent, even if you don’t sign up for a private account. And, as far as we know now, the President’s plan would apply the same cuts to future disability and survivor’s benefits. The cut in benefits over a younger worker’s lifetime could total $152,000. And, private accounts might not make up that loss.
“We need to stop the privatization plans that would dismantle Social Security through benefit cuts and by diverting trillions of dollars from the trust fund. And, we need to restore bipartisanship to the debate and return to fiscal responsibility and pay back the trust fund. Any effort needs to ensure that seniors, widows, children, and disabled workers get the benefits they earned.
“Finally, we need to address the real problems facing everyday Americans trying to plan for their retirement by making it easier for people to save more, outside of and not at the expense of Social Security, and helping them manage long-term health care needs and costs.”
# # #
|
|
