Sam Johnson

Social Security

I serve as the highest-ranking Republican on the Social Security Subcommittee of the House Ways and Means Committee, often called the Ranking Republican or Ranking Member.  I have a long track record of working to strengthen the Social Security system, including writing the legislation to end the so-called "earnings limit" on seniors who work past retirement (now law) and drafting legislation to stop the raid on Social Security.  

In roughly ten years, the Social Security system will pay out more benefits than is being collected in Social Security taxes.  As each day, week, month and year passes that Congress does not act to reform the Social Security system, the fewer options will be available to fix this system.  There are fundamentally only three things that can be done to reform the system:  1) increase rate of return on investment, 2) increase taxes, or 3) cut benefits which includes raising the retirement age.  The longer Congress avoids this debate, the less opportunity we have to use the power of compound interest to fix the system, leaving only cutting benefits and raising taxes as options.

I often meet with people and engage them on the important issue of Social Security – and the 12.4 percent of their salary they send to the program.  When I ask, "Is it your money? Or is it the government's money?" everyone says, "It's my money."

Well, most constituents are shocked to learn that the 12.4 percent of payroll tax they pay to Social Security in every paycheck is not set aside in a special account for them to reclaim when they retire.  That tax money is used to pay for this year's retirees and the rest is invested in Treasury Bonds that then masks our Federal budget deficit. 

I am one of only a handful of Members of Congress to introduce a comprehensive Social Security solution that has been scored as permanently solvent.  My proposal for reform is simple and says, "Let's share."

You keep 6.2 percent to invest in a personal retirement account – and take advantage of the miracle of compound interest.  You'll have a sizable retirement fund and a real asset to pass on to your loved ones.  There is a guaranteed minimum benefit.

The government gets 6.2 percent to meet its obligations to those over 55 and to the disabled and survivors.  You also get back the amount you've already paid in.

My plan is balanced, fair and it will work.  More important, H.R.2002, the Individual Social Security Investment Program Act of 2007, gives you control over your money.

Related Documents:

Column - Your privacy and identity theft prevention 7.20.2007

Press Release - House passes Johnson’s pension-reform bill 12.15.2005

Press Release - Sam Johnson hails “phased retirement” in pension bill 11.10.2005

Press Release - Social Security Leaders Introduce GROW Accounts Act 7.15.2005

Press Release - House panel passes Johnson’s pension bill 6.30.2005


More Documents...

Related Files:

Text of H.R. 3304

SSA Actuary Memo

Text of H.R. 530

Text of H.R. 4714