Social Security Debates in Florida

A copy of John’s opening and closing comments on March 3, 2005:

Good Morning, I would like to thank the Tower Forum for
this opportunity to take part in discussing this
important issue.

I am the Florida State Director for FreedomWorks.
FreedomWorks is a national grassroots organization of
over 700,000 Americans fighting for policies that
respect the dignity of the individual and empowers them
to be more in control of their lives and the money they
work hard to earn.

Social Security is an important institution in this
country and for two thirds of the elderly, Social
Security is their major source of income. For one third
of the elderly, Social Security is virtually their only
income.

Social Security is not in crisis today or tomorrow,
but soon Social Security will begin to feel the stress
of meeting its obligations to retirees.

Social Security is a pay-as-you-go system, which means
today’s retiree’s benefits are funded by today’s
workers payroll taxes. When Social Security began 70
years ago, there were 50 workers for every retiree,
today it is 3 to 1.

Due to baby boomers retiring and dwindling birthrates,
the Social Security Administration projects that by the
year 2018; the ratio will be 2 to 1.

In 13 years Social Security will not be able to fund
full benefits and will have to use the money that is
owed from the Social Security Trust Fund to keep Social Security solvent. The money from the trust fund is projected to run out by 2042.

But, it is important to remember that there is no
money in the Trust Fund, the federal government uses
any surplus money from social security payroll taxes to
fund other government expenses. The money taken from
the trust fund is replaced with Special Issue Treasury
Bonds. This is basically government borrowing money
from itself and leaving an IOU.

By the year 2018, the federal government will have to
find a way to pay back the borrowed money to fund
benefits.

Without reform the Social Security Administration
reports that eventually payroll taxes will have to be
raised to 18% and benefits reduced by 25% to 33%.

The math is clear and Social Security is too important
not to address the impending problems today, we need to
put partisan politics aside and sit down together to
discuss all the options available, including allowing
younger workers to invest a portion of their payroll
taxes into Personal Retirement Accounts. We need to
make sure Social Security is strengthened for the
future, so today’s retirees will receive full benefits
and our younger workers will have a retirement they can
depend on.

Thank you,

Q & A Time

In conclusion, I would like to say that the Social
Security debate is not about securing benefits for
today’s seniors and those nearing retirement—any
reforms passed will guarantee they receive every penny
they have been promised.

This debate is about young workers and future
generations, who will pay the price if we fail to act.

Personal Retirement Accounts would free the government
from continuing to make promises it cannot fulfill, and
they free future generations from depending on
government for their retirement.

This reform offers potential for wealth creation, as
workers and minorities would finally have a chance to
own a share of the US economy, and pass wealth onto
their families.

Thank you