Kerrey Release on 'Promise' of Social Security Reform Plan
Kerrey Release on 'Promise' of Social Security Reform Plan
- AuthorsKerrey, Sen. J. Robert
- Institutional AuthorsSenateFinance Committee
- Subject Area/Tax Topics
- Index Termslegislation, taxtax policy, reformFICA benefitssavings, incentives
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 1999-18384 (2 original pages)
- Tax Analysts Electronic Citation1999 TNT 98-56
=============== FULL TEXT ===============
UNITED STATES SENATOR FOR NEBRASKA
May 20, 1999
[1] WASHINGTON -- Senator Bob Kerrey today introduced comprehensive Social Security reform legislation that has bipartisan support. Kerrey said the bill keeps Social Security solvent, keeps the Social Security benefit promise to all beneficiaries, and addresses the growing wealth gap in America.
[2] "If we take no action to reform our Social Security program now, we will be leaving a legacy to future generations that will require a 25% to 33% cut in their Social Security benefits when they retire," Kerrey said. "We have the opportunity and responsibility to not allow that to happen. The plan we introduce today will take us in the right direction. We keep Social Security solvent, we maintain the benefit promise to all beneficiaries, and we address the growing wealth gap in America. This is a very good start in reforming our entitlement programs."
[3] Kerrey outlined some of the major themes of the legislation, cosponsored by Senators Gregg (R-NH), Breaux (D-LA), Grassley (R-IA), Robb (D-VA), Thompson (R-TN) and Thomas (R-WY):
o Keeps Social Security solvent and keeps the Social Security
promise to all beneficiaries:
- Makes financing changes and program changes to ensure
solvency;
- Does not impact beneficiaries 62 or over;
o Promotes wealth creation and financial independence:
- This plan begins to attack the growing wealth gap in America
by giving every American control and an ownership stake in
their own retirement wealth. It creates individually owned
retirement savings accounts, modeled after the federal
employees Thrift Savings Plan, that will accrue wealth and
interest over the course of the beneficiaries working lives;
- The plan includes the Kerrey KidSave account, which will
provide every child $1,000 at birth and $500 each of the
first five years of life. This account is rolled into the
personal savings plan once the individual reaches age 21;
- Creates ownership of these assets so they can be passed to
heirs;
o Maintains current disability benefits and protects benefits
for women;
o Rewards work:
- Eliminates the earnings test for current retirees;
o Boosts benefits for low income workers:
- Adds more progressivity to the traditional Social Security
benefit formula and provides government match to individual
accounts;
o Eliminates the need for any future increase in the payroll
tax
- AuthorsKerrey, Sen. J. Robert
- Institutional AuthorsSenateFinance Committee
- Subject Area/Tax Topics
- Index Termslegislation, taxtax policy, reformFICA benefitssavings, incentives
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 1999-18384 (2 original pages)
- Tax Analysts Electronic Citation1999 TNT 98-56
