The Threatened Bankruptcy of Social Security

Who Will Harm Social Security More? Congressional Fight Intensifies

Social Security and Medicare are directly funded by "Payroll Taxes" (FICA); 80% of federal revenue comes from taxing wages (individual income tax and payroll taxes).

March 23, 2011

National Journal - Away from all the attention on the U.S.-led military mission in Libya, Capitol Hill lawmakers on Tuesday continued their own air war over the future of the federal budget, particularly targeting entitlement reform. The current dogfight is over which party will do more damage to Social Security and the seniors who depend on it.

On Tuesday, the Democratic Congressional Campaign Committee announced the launch of a campaign of automated and live phone calls, print ads, and e-mails targeting 10 House Republicans for supporting a "radical scheme to privatize Social Security and Medicare as we know it."

The official website of House Speaker John Boehner, R-Ohio, lashed back, saying,

"It is the president's own budget that by doing nothing would lead to 'radical benefit cuts' for seniors and future retirees, while piling more debt onto the backs of our kids and grandkids."

Neither party has yet to specifically outline where they may be headed in terms of entitlement reform, seen as a key piece to solving U.S. debt problems. But House Republicans, in criticizing President Obama for failing to throw out some proposals as part of his 2012 budget plan, are promising that their own budget proposal, to be released next month, "will lead where Obama did not do so."

In fact, House Budget Chairman Paul Ryan, R-Wis., has long insisted that entitlements are unsustainable at current program levels. And his own "Roadmap for America's Future Act" would make comprehensive changes to Social Security and federal involvement in health care, including Medicare. But how far the GOP plan might mirror Ryan's thinking remains uncertain.

Tuesday, in announcing their campaign against 10 House Republicans, Democrats argued that Ryan and others in his party will go too far in proposed fixes to Social Security, which the White House says is solvent through 2037. Their effort is clearly intended to promote and capitalize on potential public backlash.

"Everyone agrees we need to cut spending, but House Republicans are making the wrong choices by forcing seniors to shoulder the burden while not asking Big Oil companies making record profits to sacrifice even the smallest amount," the DCCC's Jennifer Crider said. "The DCCC will go district-by-district to stop House Republicans' plans to cut seniors' hard earned benefits in the middle of a recession just so Big Oil companies can keep their taxpayer subsidies."

As part of the Democratic campaign, a new website, www.stopbenefitcuts.com, allows users to print out a pledge for members of Congress to sign.

In addition, the DCCC says it is launching automated phone calls, live phone calls, print ads, and e-mails in Ryan's district and the districts of GOP Reps. Paul Gosar of Arizona, Bill Young and Allen West of Florida, Dan Benishek of Michigan, Joe Heck of Nevada, Lou Barletta of Pennsylvania, Blake Farenthold of Texas, Sean Duffy of Wisconsin, and David McKinley of West Virginia.

A sample script of one of the planned phone calls begins:

"Did you know that Representative Paul Gosar is part of a majority of the Republicans in Washington pushing to cut seniors' benefits in Social Security and Medicare? If we don't act now, 106,289 seniors here in Arizona could have their benefits cut in the middle of a recession.

"Everyone knows that Social Security belongs to the people who worked their whole life to pay into the system. But Representative Paul Gosar wants to use Social Security and Medicare as a piggy bank for the government."

In response, Boehner's deputy communications director, Don Seymour, later posted a blog item and e-mailed a "Speaker Alert" characterizing the DCCC as "President Obama's congressional campaign arm" and criticizing Obama for ignoring "the need to protect entitlement programs for future generations."

In the blog post, Seymour also noted several news articles indicating that benefit cuts will be necessary if Congress does nothing, as well as polls showing that a majority of Americans believe Social Security will be in trouble unless changes are made.

"So, while the president's political arm pitches misleading attacks and the White House pushes a status quo budget plan that would guarantee future benefit cuts, House Republicans have pledged to lead where the president has failed," Seymour wrote.

"Without a real plan to protect these programs, they simply won't be there for future generations. And that's unacceptable."

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