FOR IMMEDIATE RELEASE CONTACT: Doug McGinn March 10, 1999 (202) 225-3031 RYAN HAILS INITIAL BUDGET FRAMEWORK
WASHINGTON - First District Congressman Paul Ryan today hailed the recent announcement of the initial budget framework agreed to by House Budget Committee Chairman John Kasich and Senate Budget Committee Chairman Pete Domenici. In coming to an early agreement, the House and Senate can now move forward in tandem to craft the final details of the federal budget they hope to offer in the next couple of weeks. 100 Percent Firewall Installed for Social Security
Major Points of the House and Senate Budget Agreement:
Under the announced framework, two proposals put forth by Ryan will be incorporated in the final budget:
- 100 percent of all revenues from payroll (FICA) taxes and interest are directed towards Social Security.
- Complete firewall installed to shield all funds designated to Social Security Trust Fund from being used to pay for other government programs.
- Provides for significant tax relief using only non-social security surpluses.
- Budget agreement stays within the spending caps agreed to in the 1997 Balanced Budget Act passed by Congress and signed into law by the President, while making significant payments on the national debt.
"I believe that this budget framework will assist us in finally implementing some much needed financial controls in the federal budget," said Ryan. "For too long, Congress and the President have raided the Social Security Trust Fund to pay for other government programs. This practice has placed the retirement security of millions of Americans in jeopardy. This budget framework would end this disastrous practice."
- The first of these proposals, based on Ryan's Social Security Surplus Accountability Act, would prohibit the use of Social Security revenues to pay for other, non-related government operations.
- The second, based on Ryan's Budget Surplus Accountability Act, would amend House budget rules to allow non-social security surpluses to go towards debt reduction or tax relief, but prohibit new spending.
"Our proposal walls-off Social Security, establishes significant tax relief, provides a much needed boost for our men and women in the military, and significantly pays down the national debt. Under the President's proposal, fixing the Social Security program would be postponed, and, in lieu of any significant tax relief, surplus funds would be directed towards new and expanded government programs. The difference is clear: Our budget requires 100 percent of all Social Security revenues to go towards Social Security, the President's budget continues to raid the program. Our budget ensures that non-Social Security surpluses go back to the taxpayers and towards debt reduction, the President's budget designates these surpluses to go towards new spending programs."
"Paul Ryan has served as source of creative ideas throughout the budget process," said House Budget Committee Chairman John Kasich. "He has played a key role in formulating this budget framework and I look forward to working with him as we work to make this proposal a reality."