RE: Why should Social Security reform happen now?

[National Dialogue Moderator <moderator>]

The question of whether or not we should reform Social Security now is a
legitimate one.  For a detailed answer describing why Congress and the
President should work in a non-partisan manner to reform Social Security
now, I would urge those participating in this discussion to reference my
background paper on this issue.  This paper appears on this website.

However, for the sake of convenience, allow me to summarize why Congress
should begin sooner rather than later to reform Social Security:

	1.  Demographic changes in our nation - the retirement of
the baby-baby boomers and the blessing of longer life expectancies -
combined with fewer workers paying Social Security payroll taxes will begin
to put strain on the program.  Though the program is currently running a
surplus, it is expected that Social Security will begin to post deficits by
the year 2014.  It is also expected that Social Security will be unable to
meet its obligations to current workers by the year 2034.

	2.  Social Security is not a pre-funded system, like a
private pension plan.  It is a pay as you go system where the payroll taxes
of current workers are used to finance the benefits of current retirees.
Under this structure, if we wait until the last second to address the
long-term financial problems facing the program, other federal programs of
vital interest, along with the Social Security program, will be put in
financial jeopardy.

	3.  Delaying action on this important issue limits the options
available to address future funding shortfalls.  Future policymakers
will be left with the unattractive option of either cutting benefits or
increasing payroll taxes.  

Since my election to Congress, I have attended numerous hearings as a member
of the Ways and Means Social Security Subcommittee.  The one area of
consensus of experts from across the political and ideological spectrum is
that the sooner this issue is addressed, the better.

Kenny Hulshof