Congressman Emanuel on the
President’s State of the Union Address

WASHINGTON, D.C.—U.S. Representative Rahm Emanuel (D-IL) released the following statement in response to the State of the Union Address.

“Tonight the President did a good job of staying on message:  freedom is on the march in Iraq; Social Security is in crisis; and, we need to control government spending.  The reality, however, is that while the elections in Iraq were a success, the country is hardly stable.  We need to make some changes in Social Security to secure that essential program for the long-run.  And in the four years of Mr. Bush’s Presidency, discretionary spending increased by more than 20 percent, creating a record half trillion dollar annual deficit. 

But clearly the highlight of President Bush’s speech was the debut of his much anticipated plan to privatize parts of Social Security.  The President's plan would require a 40 percent cut in current benefits while adding $2 trillion to our federal debt - driving up interest rates and further weakening the dollar.  That is not a prescription for greater savings or long-term economic health. It is an ideologically-driven solution in search of a crisis.

We should supplement Social Security rather than try to supplant it.  A better alternative is for Congress to promote policies to help Americans save for their retirement, such as encouraging companies to automatically enroll new employees in their 401(k) plans; helping taxpayers deposit their refunds directly and automatically into IRAs; creating a “Universal 401(k)” that is portable from job to job; and making the “saver’s credit” refundable to help moderate income families save more money for retirement. 

We should protect Social Security AND help Americans save more.  The plan the President announced tonight will add $2 trillion to our debt without accomplishing either.”