by Mike Hall, May 10, 2011
When they’re not busy trying to privatize Social Security, Congressional Republicans clamor to cut Social Security in the name of deficit reduction. Today, pointing out that “Social Security is not responsible for the deficits we face,” Sen. Max Baucus (D-Mont.) said Social Security should not be on the table in upcoming budget deficit talks.
In a Senate Finance Committee hearing, Baucus, the committee chairman, said the Social Security Trust Fund has a $2.6 trillion surplus and will pay full benefits through 2037 and “even after that, payroll tax revenues will be able to pay 78 percent of benefits.”
This is not a crisis. It is a long-term issue. It is an issue that should be addressed sooner, rather than later, to give workers time to plan for any changes. But the current situation does not necessitate rushed or severe action.
Click here for his full statement. Nancy Altman, co-chair of the Strengthen Social Security, Don’t Cut it coalition told the committee, said “the law is clear. Social Security shall not be counted for purposes of the federal budget.”
The injection of Social Security into the broader deficit debate obscures the fact that by law, Social Security lacks the authority to add to the federal deficit. Social Security lacks the legal authority to deficit-spend, and so, cannot run a deficit. Because it cannot run a deficit, it cannot add to the federal deficit
Read her entire testimony here and click here to watch an archived video of the hearing.
