RE: Democrats and Social Security

[National Dialogue Moderator <moderator>]

One of the biggest strengths of the Kolbe-Stenholm bill is that it
is the only bill that has support from Democrats and Republicans.
There are three Democratic cosponsors of our bill, and several
other Democratic members are seriously considering our plan.  Our
plan has several features that appeal to Democrats.

I believe that our proposal will establishes the foundation 
for a credible bipartisan consensus on Social Security reform 
that Democrats can support with pride.   Our proposal 
demonstrates that it is possible to establish individual accounts
which improve rates of return for all retirees without 
jeopardizing the important protections that the Social Security
system provides for low-income retirees, survivors and the 
disabled.  Our plan contains a comprehensive set of reforms that
maintain the best features of the current system while adding
innovative reforms that will strengthen retirement security for
all workers.

The Kolbe-Stenholm plan contains a new minimum benefit provision
that offers stronger poverty protection than provided under 
current law.  Under the Kolbe-Stenholm bill, we guarantee that a
someone who has worked all of his or her life will recieve a Social
Security benefit that will keep them out of poverty, with any 
income from their individual accouns as icing on the cake. 
Current law cannot make that promise The plan also provides a 
subsidy to supplement the individual accounts of low-income 
workers.  Finally, by addressing the unfunded liabilities of the
Social Security without shifting new obligations onto general 
revenues, the Kolbe-Stenholm plan reduces the pressure to reduce
funding for other Democratic priorities such as education and 
health care. 

As a farmer, I am a natural optimist, so I continue to believe 
that it is possible to enact Social Security reform this year.
Reaching a consensus will require leadership by the President, 
leaders in Congress from both parties and rank and file members
from both parties willing to follow and support tough choices.
Most importantly, continued public pressure and support for action
to deal with Social Security will keep pressure on Congress and
the President to tackle this issue.

Rep. Charlie Stenholm