Baucaus: Privatizing Social Security would make things worse
By MAX BAUCUS
U.S. Senator
The Social Security program, which Franklin D. Roosevelt helped establish in 1935, helps more than 160,000 Montanans pay the bills and make ends meet. That's why I'm eager to work together on a plan to make this good safety net an even better safety net.
We're honored that President Bush is visiting Montana and we welcome him. The President's Great Falls stop-over is a chance for us as Montanans to tell him what's on our mind and showcase all our wonderful state has to offer.
As the top Democrat on the Senate Finance Committee, I share the president's goal of making Social Security better for the long run, and I agree that we need to significantly increase individual retirement savings. I was proud to help him cut taxes for all Montanans in 2001 and provide a long-awaited prescription drug benefit to seniors in 2003. But I don't think the proposed plan to privatize Social Security is a wise move right now. In a nutshell, here's why:
Privatizing Social Security would lead to huge cuts in benefits for Montana's seniors.
Uncle Sam would have to borrow $2 trillion from the American people to pay for the plan, driving the nation even deeper into the red and saddling future generations with a burden they didn't ask for.
Solvent for the next 50 years
Yes, we need to work on ways to help make Social Security better, but the current program isn't facing a "crisis" as some would have you believe. Truth is Social Security will be just fine for the next 50 years. That means we have time to develop a plan to shore up the program, without cutting benefits or adding trillions to the national debt.
I think a better approach is to help Americans save for retirement outside of Social Security. That's why I've long supported making contributions to certain retirement accounts tax deductible. And that's why I've worked to reform our pension system. But, nonetheless, Americans are saving only about 1 percent of their personal income. Clearly, more needs to be done.
America should honor its promise to those who work hard, play by the rules, and earn the right to a secure retirement with Social Security. Forty-seven million Americans receive Social Security benefits. For two out of three seniors, Social Security provides most of their income.
Social Security also provides critical support for the disabled and for the surviving family members of workers who die. Montanans clearly rely on the program.
Not in crisis
Yes, Social Security faces challenges. But it's not in crisis. The Congressional Budget Office, a nonpartisan number-crunching outfit, says if we do nothing the boomers won't make the Social Security Trust Fund start going broke until 2052.
And just because Social Security will eventually - emphasis on eventually - start to go broke, that doesn't mean the whole system is broken. We should strengthen Social Security for the long run, but avoid making sweeping new changes that could ultimately hurt the program.
As Hippocrates warns the physician, "First, do no harm." That's why we must make sure that any change we make doesn't compromise our retirement system. The simple truth is that privatizing Social Security would make things worse instead of better.
I look forward to working with President Bush and both parties in Congress to do what's right for Montana and America. You can bet that I'm committed to finding a solution that truly strengthens and improves this program that is so important to so many.
I'd like to hear more from Montanans on this topic. That's why I'm holding a listening session in Billings at 11 a.m. Friday at the South Park Senior Center. If you can't make it, send me an e-mail, write a letter, or call my office. |
