The Social Security Surplus: Setting The Record Straight
In President Bush’s Budget For Fiscal Year 2001, He Is Not Touching The Social Security Surplus:
President Bush Promises That His Budget Preserves And Protects Social Security. “Now tomorrow, my Office of Management and Budget will issue what’s called a mid-session budget review, and we’ll show in plain terms that we have fully funded and will be able to fully fund our nation’s priorities, that we’ve got enough money to preserve and protect Social Security, that will pay down over $100 billion of public debt; that . . . every dime that comes into Medicare will be spent on Medicare; and we can meet our priorities when it comes to the military and education.” (President Bush, Speech, August 21, 2001)
Here is the NYT news, "At the same time, Mr. Bush talked in some detail about the economic slowdown, which he called a "correction," and left open the possibility that he might dip into the Social Security surplus if a further economic stimulus was needed."
"I've said that the only reason we should use Social Security funds is in the case of an economic recession or war," Mr. Bush said.
http://www.nytimes.com/2001/08/24/politics/24CND-BUSH.html?ex=999316800&en=ea230a529102aadb&ei=5040&partner=MOREOVER
If you check out his 2000 campaign promises http://www.georgewbush.com/issues/socialsecurity.html, you will see he indicated;
"Governor Bush's Reform Proposal as promised in his campaign. Governor Bush will build a bipartisan consensus to save Social Security based on the following principles: Absolutely no change in existing benefits for retirees or near-retirees. The Social Security surplus must be locked away only for Social Security."
And he has said it a number of other times in different new stories. For example;
The White House says the Social Security surplus will remain off limits for the next 10 years. But to keep its pledge to protect the funds, White House economists had to alter accounting practices.
http://www.usatoday.com/news/washdc/august01/2001-08-16-social-security.htm
He is really caught now, there is no way he can get out of this one.
By Jonathan Weisman, USA TODAY
How should the U.S. make Social Security fiscally sound?
WASHINGTON — Despite their ardent pledges to place surplus Social Security funds in a "lock box," President Bush and Congress are already picking the lock, congressional sources from both parties say.
The Congressional Budget Office (CBO) is expected to release a revised budget-surplus estimate on Aug. 28 that indicates Social Security reserves will be tapped for other government spending during the current fiscal year, which ends Sept. 30.
The White House budget office soon will produce its own estimate that shows the Social Security surplus untouched — but only because of a change in long-standing accounting methods that the administration says make surplus data more accurate. "The president's budget fully protects Social Security," Bush's spokesman, Ari Fleischer, said Wednesday.
This fiscal year, Social Security is expected to collect $156 billion more in taxes than it pays in benefits. Politicians in both parties have pledged to use that money only to pay retirees or reduce the national debt. That promise seemed easy to keep in January, when CBO estimated the budget would have $125 billion in surpluses this year on top of Social Security reserves.
But that cushion is gone. About $74 billion went to the tax cut. Up to $40 billion in expected revenue was lost to an economic slowdown, says William Hoagland, Republican staff director of the Senate Budget Committee. The rest went to increased spending.
Hoagland said he expects the CBO to project that the government will tap at least $3 billion of the Social Security surplus this year, keep out of it in fiscal year 2002 and spend up to $15 billion of Social Security reserves in 2003 and again in 2004. That would have no effect on current Social Security benefits, but budget analysts say it would be a significant step backward from recent pledges of fiscal discipline.
The White House says the Social Security surplus will remain off limits for the next 10 years. But to keep its pledge to protect the funds, White House economists had to alter accounting practices.
Every summer, government accountants recalculate Social Security tax receipts and adjust the current budget accordingly. This time, the recalculation would reduce the 2001 surplus by $4.3 billion — and show that the government used the money. So this year's Social Security reserve won't reflect the recalculation. An administration official said the change gives a better picture of Social Security's current status.
Wednesday, Democratic leaders cited the threat to Social Security's surplus and urged Bush to address "this fundamental change in our fiscal situation." http://www.usatoday.com/news/washdc/august01/2001-08-16-social-security.htm
RNC Launches Honesty Campaign
www.georgewbush.com/
At the same time, Mr. Bush talked in some detail about the economic slowdown, which he called a "correction," and left open the possibility that he might dip into the Social Security surplus if a further economic stimulus was needed.
"I've said that the only reason we should use Social Security funds is in the case of an economic recession or war," Mr. Bush said.
http://www.nytimes.com/2001/08/24/politics/24CND-BUSH.html?ex=999316800&en=ea230a529102aadb&ei=5040&partner=MOREOVER
The Social Security Surplus: Setting The Record Straight
In President Bush’s Budget For Fiscal Year 2001, he Is Not Touching The Social Security Surplus:
President Bush Promises That His Budget Preserves And Protects Social Security. “Now tomorrow, my Office of Management and Budget will issue what’s called a mid-session budget review, and we’ll show in plain terms that we have fully funded and will be able to fully fund our nation’s priorities, that we’ve got enough money to preserve and protect Social Security, that will pay down over $100 billion of public debt; that . . . every dime that comes into Medicare will be spent on Medicare; and we can meet our priorities when it comes to the military and education.” (President Bush, Speech, August 21, 2001)
Bush campaign promises at a glance
The Associated Press
A look at George W. Bush's campaign promises:
ABORTION:
Sign ban on procedure called partial-birth abortion by opponents.
No move toward constitutional abortion ban.
DEFENSE:
Build robust missile defense system that protects allies as well as United States, seeking Russia's agreement to amend Anti-Ballistic Missile Treaty, which forbids such a system, but ending treaty if necessary. $1 billion more a year for military pay raise, giving average soldier additional $750 in first year. Favors cuts in nuclear arms, possibly even if Russia does not do the same.
EDUCATION:
Education reforms to be first legislation sent to Congress.
Stepped-up standardized testing of students, with states to be financially rewarded or penalized according to their education performance. When schools in poor areas fail standards for three years, parents could take their share of federal school aid, about $1,500, and use it to transfer to another public school, pay for private school, or get tutoring. More charter schools.
$5 billion more for literacy over five years.
$8 billion more for college scholarships and grants over 10 years.
Let families save, tax-free, $5,000 per year per student for education expenses at all ages.
ENVIRONMENT-ENERGY:
Increase domestic oil and gas production and exploration, including in the protected Arctic National Wildlife Refuge in Alaska.
Halve capital gains taxes when landowner sells property for conservation. $50 million in matching grants with states for landowners to restore habitat or protect rare species while farming or ranching.
Opposes ratification of Kyoto agreement on global warming.
FARM AID:
Eventual "transition to a market economy" not dependent on federal supports. But sets aside extra $7.6 billion for crop insurance over 10 years.
GUN CONTROL:
Raise age for handgun possession to 21. Background checks at gun shows if they are instant. Would sign a bill requiring child-safety locks to be sold with guns.
HEALTH CARE:
Tax credit of up to $2,000 per family to help low-income working Americans buy health insurance. Expand tax-free medical savings accounts that can be used to pay for health expenses. Add 1,300 rural health care centers.
Money to states to provide free prescription drugs for the elderly poor while setting up program over four years to subsidize choice in drug plans for other Medicare beneficiaries.
IMMIGRATION:
More visas for highly skilled workers and temporary farm laborers. Spend $500 million over five years to speed processing of immigration applications. Split Immigration and Naturalization Service into two agencies devoted to welcoming legal immigrants and cracking down on illegal ones.
INTERNET:
Extend moratorium on new Internet sales taxes at least through 2006. $400 million over five years to improve education value of Internet use in schools.
RETIREMENT:
Give workers option of staying entirely in Social Security system or else investing a portion of their Social Security taxes in individual retirement accounts, taking a smaller payout from the program when they retire but supplementing their benefits with the private investments.
Ruled out further increase in age for receiving Social Security benefits for people near retirement, but did not rule out higher age for younger workers.
TAXES:
Cut all income tax rates, with lowest rate dropping to 10 percent and highest to 33 percent. Double child tax credit to $1,000. Charitable deductions could be taken by people who don't itemize. Promises no increase in personal or corporate tax rates. Eliminate inheritance tax. Reduce marriage penalty paid by many two-income couples by allowing a deduction of 10 percent of the lower-earning spouse's salary, up to $30,000. Estimated cost through 2010: at least $1.3 trillion.
TRADE:
Negotiate more trade agreements. Give priority to a free-trade agreement for the Western Hemisphere.
WELFARE:
Bush: $8 billion plan in first year to encourage churches and other groups to assume more responsibility for needy through tax breaks and other incentives.
Contact: Chris Butler 703-426-4477 Oct. 30, 2000
Washington, DC, Oct. 30, 2000 -- The Seniors Coalition and its 3.7 million members are appalled by a recent unsolicited telephone ad directed at Michigan seniors featuring prominent actor Ed Asner. The ad claims that presidential candidate Governor George W. Bush is going to take away the benefits of Social Security recipients with his reform plan. Although it has stopped running, the ad made its claim despite the fact that both presidential candidates have pledged to protect the benefits of current and future retirees.
Mary Martin, chairman of the board and executive director of TSC, emphatically responded: "It's not surprising that, with Halloween coming and the election less than two weeks away, Mr. Asner is putting his acting skills to use playing the 'Social Security Boogeyman.' It's reprehensible, so close to election time, that he would stoop to scare tactics to get seniors to vote for a particular candidate. Senior voters have little time before the election to check the validity of Mr. Asner's claim."