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First Step: Stopping the Raid on Social Security
Opinion Editorial by
Congressman Paul Ryan |
If you attended one of the listening sessions I held earlier this year throughout Southern Wisconsin, you may be wondering about the latest news out of Washington regarding Social Security reform. At the listening sessions, I described the financial problems facing Social Security in the future and outlined my legislative proposal to strengthen the program for all generations. My plan was a comprehensive approach that would achieve solvency, stop the government from raiding surplus Social Security tax dollars to pay for other programs and give younger workers the chance to get as good a deal from Social Security as current retirees get.
I am continuing to fight for all of these goals, but it is becoming clear that in order to break the logjam on this issue in Washington and achieve consensus, we may have to tackle one goal at a time.
That is why I have proposed new legislation, together with several of my colleagues on the Subcommittee on Social Security, that would enact one vital element of my earlier proposal: stopping Congress’s decades-long raid on Social Security tax dollars by making sure that money goes to workers’ Social Security retirement benefits.
This is a fundamental first step on the path to protecting Social Security for all generations, and it is something members of Congress - regardless of party - should be able to work together to achieve.
If you’ve heard me speak at all about Social Security over the past six years, you’ve surely heard me say that Congress needs to stop raiding the Social Security trust fund to pay for unrelated government spending. The American people are right to demand an end to this shameful practice.
Now and for the next twelve years or so, workers will be paying more in payroll taxes than is needed to cover Social Security benefits. This is the short-term surplus. For over 30 years, Congress has spent the Social Security surplus on other government programs, and it’s a safe bet that this will continue unless we can enact legislation that requires a change.
My colleagues and I are introducing legislation that would do that. It would give workers under the age of 55 the choice of having their share of the Social Security surplus put in a personal retirement account that is their property and would be dedicated to their Social Security retirement benefit. Any worker who does not want to participate could opt out.
Unlike the current system, these accounts would have workers’ names on them and would hold real assets that are fully inheritable.
At the outset, the accounts would be invested in marketable U.S. Treasury bonds - among the safest assets in the world. After a few years, workers would have the opportunity to diversify, if they wish, among a selection of other prudent investment options. And it works within - not outside - the Social Security system to give workers ownership of part of their Social Security benefit. This proposal puts us on track to make sure Social Security taxes are only used for Social Security, as intended.
Another clear benefit of this reform is that it would unmask the true size of the budget deficit, which is currently underestimated because Congress uses the surplus Social Security dollars to fund other spending. Providing a more honest look at the deficit will help lawmakers grapple with the shortfall.
Admittedly, this proposal by itself is not sufficient to fix Social Security’s full solvency problem for the future, but it is a clear step in the right direction. Congress should be able to work together in a bipartisan way to ensure that today’s workers receive their fair share of the Social Security surplus to help them with their retirement needs.
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