FOR IMMEDIATE RELEASE: February 19, 1998
CONTACT: Marty Dannenfelser or Kristin Hansen, 202-393-2100
For Radio: Rebecca Biles
BAUER CALLS FOR REFORM OF SOCIAL SECURITY, CUT IN WORKERS' PAYROLL TAXES
WASHINGTON, D.C. -- Family Research Council President Gary L. Bauer outlined a plan to congressional leaders Thursday which would "devote all of the projected Federal budget surpluses to fixing the long-term deficit in Social Security," while simultaneously providing a payroll tax cut "for America's working families."
In letters to Senate Majority Leader Trent Lott, House Speaker Newt Gingrich and other congressional leaders, Bauer stated that "each upcoming budget surplus should be devoted, dollar-for-dollar, to a reduction in the payroll tax rate, until such rate reductions reach 20 percent." In exchange, workers who benefit from the tax cut would experience a proportional reduction in the scheduled growth of their future benefits. Bauer pointed out that workers would have the freedom to invest the additional money they derive from the payroll tax cut in a personal retirement plan, the stock market, their children's education or other family priorities.
In addition to providing immediate tax relief for working families, the FRC proposal is designed to address "the demographic deficit facing Social Security when the baby boomers retire." Bauer emphasized that his proposal "would not affect current retirees." He noted that the proposed changes in taxation and future benefit growth "would affect future retirees only to the degree to which they benefit from the upcoming payroll tax cuts while they are still in the work force."
Bauer said that "with a mechanism such as this in place, Congress would have great incentives to restrain new spending initiatives in the immediate years ahead. Taxpayers would be reassured that the surpluses being generated by their work effort will go dollar-for-dollar into a plan that provides both immediate tax relief for working families and a responsible, long-term repair of the Social Security retirement system."
For more information, or a copy of the letter to congressional leaders, please call FRC's press office.