53 Senators vote to raid the Social Security trust fund

TownHall.com ^ | 3/17/06 | Tim Chapman

[eeevil conservative]

53 Senators vote to raid the Social Security trust fund

Yesterday, Senators Jim DeMint and Mike Crapo introduced an amendment to prevent the current Social Security Surplus from continuing to be spent. 53 Senators voted against it.

After the vote, DeMint issued the following statement:

“Sadly, fifty-three senators turned their backs on America’s seniors,” Senator DeMint said. “There is simply no way to save Social Security if we don’t have the courage stop using the surplus as a secret slush fund. I’m thankful there were forty-six senators who stood with America’s seniors to end the raid. We will not be deterred by cynics who offer no solutions.”

“Those who voted against this amendment voted to raid Social Security,” said Senator DeMint. “Now, every senator will be on record whether they oppose or support the raid. This said absolutely nothing about personal accounts, it was about whether you believe Social Security should be saved or allowed to wither on the vine.”

Details about the amendment via a DeMint press release are in the extended section.

UPDATE: Pasted below are the 53 Senators who voted to raid the fund -- Republicans who should no better are in bold. Click here to see the whole breakdown.

Akaka (D-HI) Baucus (D-MT) Bayh (D-IN) Biden (D-DE) Bingaman (D-NM) Boxer (D-CA) Burns (R-MT) Byrd (D-WV) Cantwell (D-WA) Carper (D-DE) Chafee (R-RI) Clinton (D-NY) Collins (R-ME) Conrad (D-ND) Dayton (D-MN) Dodd (D-CT) Domenici (R-NM) Dorgan (D-ND) Durbin (D-IL) Feingold (D-WI) Feinstein (D-CA) Harkin (D-IA) Inouye (D-HI) Jeffords (I-VT) Johnson (D-SD) Kennedy (D-MA) Kerry (D-MA) Kohl (D-WI) Landrieu (D-LA) Lautenberg (D-NJ) Leahy (D-VT) Levin (D-MI) Lieberman (D-CT) Lincoln (D-AR) Lugar (R-IN) Menendez (D-NJ) Mikulski (D-MD) Murray (D-WA) Nelson (D-FL) Nelson (D-NE) Obama (D-IL) Pryor (D-AR) Reed (D-RI) Reid (D-NV) Rockefeller (D-WV) Salazar (D-CO) Sarbanes (D-MD) Schumer (D-NY) Smith (R-OR) Snowe (R-ME) Stabenow (D-MI) Talent (R-MO) Wyden (D-OR)

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The current Social Security system allows Congress to spend the Social Security surplus on other government programs. Including interest, Congress has raided $1.7 trillion from Social Security since 1985. The surplus now only consists of IOU’s stacked in a vault in West Virginia that can only be paid back by raising taxes or cutting spending.

The DeMint-Crapo Amendment to Stop the Raid on Social Security would have allowed the Senate to pass legislation with the following requirements:

· Social Security surpluses must be used to help pay for future benefits

· That it make no changes to the benefits of those Americans born before January 1, 1950

· That it provide a voluntary option for younger Americans to obtain legally binding ownership of a portion of their benefits.

[mc6809e]

Yeah, I know. I wanted "mc6809e" to answer that question.

What I really wanted to say was: "Listen, you maroon (mc6809e), that interest is paid by future taxes." But I was trying to be polite.

I think most people (including me) realize that that interest comes from future taxes. But your observation changes nothing.

My observation, that raided SS money is invested in bonds, creates a path to private investment. If people understood that their retirement money was already being invested in US government debt, they might wish to take advantage of other investment options and this would potentially lead to private accounts.

[inquest]

I'm not all that excited about having SS invest in stocks either. Just imagine having Fat Ted or John "I was in Vietnam" Kerry on the board of directors of the companies SS invests in.

That's why I was opposed to the pseudo-privatization schemes Bush had in mind for Social Security. The only answer is to dump the program like the Ponzi scheme that it is.

[don-o]

Uh, there is no such a thing

[TheLion]

"I do not really care. I am young enough social security will have long collapsed by the time I retire."

They will probably be taxing the hell out of you to keep it afloat. Anyway, try to save 20% of what you make every year and you will do just fine.

[paul51]

I thought the money was in a lock box somewhere.

[gafusa]

I have already started building for it,I am only in college so do not have a steady income, I only work summers. But I am right now monthly putting money into a mutual funds, have other funds, and long term stocks. Once I commission I will add a lot more, although I already have quite a good start. I am going to make sure I have enough money to live on my own with no government help(aside of military pay and benefits). You are probably right about the socialism, but I still hope for a tomorrow without socialism, I am hoping that liberalism will abort itself out of existence in time. I hope those coming behind me have a brighter tomorrow, and will not be robbed to subsidize me.

[gafusa]

Which is why I almost always vote against incumbents in the primaries. Yes our congressmen are mostly thieves, but there in nothing else I can do, the rest of country seems to still have its head int the sand. For every one of FR though, if we unite we can through these crooks out.

[gafusa]

It is not instant gratification, but the knowledge that the social security cannot be saved. I am instead creating my own social security, already investing in long term stocks and funds, which is hardly instant gratification.

[snowman1]

You really are misguided!!!!. They are buying bonds that will never be redeemed because they aren't worth the paper they are printed on. This is just robbing Peter to pay Paul and you know it.

[goodnesswins]

Actually, I was told by a fellow who worked for years FOR Social Security (and has written a book about it).....that they DO put the money into financial issues, like bonds.....

[DannyTN]

"Many on this forum, as well as I, have proposed that this money be put into an actual investment fu"

Many on this forum, as well as I, have proposed that this money be put into an actual investment fund"

Did this bill provide an alternate investing plan for social security, or did it simply mandate the Federal Government to stop borrowing from Social Security?

A one sided bill is nothing but an irresponsible publicity stunt.

"and the loans provided ... is guaranteed by our tax dollars"

I don't think that's true. Fannie Maes do not have the backing of the Tax payer and are not a debt of the U.S. government but only the Fannie Mae agency, which could be allowed to fail. See the following

Smacking Fannie Mae"

That's why Fannie Mae securities trade at a premium to Gov't securities, because there is more risk involved.

Do you really want to move social security to higher risk securities that do not have the full backing of the gov't?

Sure you could get a little higher interest rate, but the total debt demanded between the U.S. Gov't and Fannie Mae would be the same. So if you shifted Social Security the spread between the two would probably narrow and then the foreigners would simply be buying the U.S. Gov't securities instead of Fannie Mae's. I don't think you make a very signficant difference, except that social security would now be subject to Real Estate market bubbles and those bubbles will be exasperated by the Federal dollars that would now be flowing into Fannie Mae securities.

[gafusa]

I vote, almost always against incumbents, but the most of the country is too clueless, I can do nothing else. Yes our generation is already screwed, look at the age of those in office, they will rob us blind, the AARP and their like will rob us until they die, and I realize that, but their is no way out I can see, short of demographic changes having major effect.

[gafusa]

Nice thought, but that will never happen, the Social Security lobby is too powerful, they will not give up their gravy train for our future. They will rob us until death. Congress does not care about Social Security reform, the will just subsidize it so it explodes after they are dead, and we will take the fall.

[eeevil conservative]

ROFLLLLLLL!!!!

I was wondering if I should ask him to repeat it....

:-)

[patriot_wes]

"The Social Security "trust fund" is nothing but an IOU. So these Senators voted to put an IOU on the IOU."

You'd think by now that most amerikans would no there's no such thing as a social security trust fund.

[KarinG1]

As soon as I have the code written for the progress bar I shall transfer the wealth of all nations into my offshore accounts. I've seen it on television, you can't do it without a progress bar. They're tricky.

[Cboldt]

..do you consider this amendment by DeMint...to be basically a "stunt" to get the language that Bush wanted regarding an option for people to use some of their money going to Social Security into a private account? Or, was just a way to for the Finance Committee to have wiggle room in dealing with the Social Security funds...without having to waive a budget act?

I haven't tried to wrap my mind around the amendment or the various statutory manuevers that come into play as Congress does it's SS hocus-pocus.

I do recall Grassley's off-hand comment that SS and Medicare stuff is an $81 trillion dollar futur liability, off the books as it were. Demographics are going to kill off Social Security at some point - I won't get any, but will be obliged to continue to pay in.

[chiefqc]

They don't belong to SS so they could care less. Our elected officals live by a complete different set of rule than you and I. They have the best medical care that the tax payers can afford to supply to them while the elderly must chose between eating and their med's. Most of them are worth millions, will leave their office with more money than they get while in office and have health benifits for the rest of theeir lives.

[lucysmom]

...Congress has raided $1.7 trillion from Social Security since 1985. The surplus now only consists of IOU’s stacked in a vault in West Virginia that can only be paid back by raising taxes or cutting spending.

This week the debt ceiling was raised to 9 trillion dollars.

But that's just the tip of the iceberg. According to a recent GAO report, our whole debt is 43 trillion dollars. Kind of makes the $1.7 trillion owed to SS look like chump change, doesn't it?

Where do you think the money is going to come from to pay that? We were lied to. There is no way we're going to grow our way out of this, taxes are going to have to be raised and cuts are going to have to be made, and in the meantime, Washington votes to increase the debt so they can go on spending like the bill will never come due.

[Wolverine]

Congress does not care about Social Security reform, the will just subsidize it so it explodes after they are dead, and we will take the fall.

CONGRESS:

Be in Congress one term. Get a pension that is more than $15,000 per month. Why worry about the Citizen!