Social Security
Social Security in the United States is a social insurance program funded through dedicated payroll taxes called FICA (Federal Insurance Contributions Act). Tax deposits are formally entrusted to Federal Old-Age and Survivors Insurance Trust Fund, or Federal Disability Insurance Trust Fund, Federal Hospital Insurance Trust Fund or the Federal Supplementary Medical Insurance Trust Fund. When initially signed into law by President Franklin D. Roosevelt in 1935, the term Social Security covered unemployment insurance as well. The term, in everyday speech, is used only to refer to the benefits for retirement, disability, survivorship, and death, which are the four main benefits provided by traditional private-sector pension plans. In 2004 the U.S. Social Security system paid out almost $500 billion in benefits. By dollars paid, the U.S. Social Security program is the largest government program in the world. Largely because of solvency questions ranging from immediate crisis to large projected future shortfalls, reform of the Social Security system has been a major political issue for more than three decades during the presidencies of Gerald Ford, Jimmy Carter, Ronald Reagan, George H. W. Bush, Bill Clinton, and George W. Bush.
Joseph Biden on Social Security
More on this candidate
| Stance: | Opposes privatization of social security |
| Description: | Biden believes that Social Security is not in immediate crisis and can pay full benefits for the next 35 years. Biden opposes privatization of social security. Instead, he believes social security can be fixed by raising the amount of income susceptible to social security tax or gradually increase the age which would extend the life of social security beyond 2040. Biden stated, "If you want to help private savings for young people, let's talk about private accounts on top of Social Security, instead of in place of Social Security or in place of part of Social Security." |
| Citations: |
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Joe Biden on CNBC (8/13/07)
Joe Biden talks with Lawrence Kudlow about the economy, Social Security, foreign policy, and Iraq. (Video) |
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Retirement Security: Joe Biden (8/13/07)
Summary of Joseph Biden's stance on retirement security. |
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CNN Wolf Blitzer Reports (8/13/07)
Transcript of the show which aired April 28, 2005. Senators Biden and Coleman debate a variety of issues including social security and judicial nominations. |
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Joe Biden on CNBC (10/15/07)
He says we can gradually raise the age or gradually raise the tax which will increase the life of social security 30 years. He also says full privatization is a mistake. |
Sam Brownback on Social Security
More on this candidate
| Stance: | Supports a privatized, market-based alternative to Social Security |
| Description: | Sam Brownback cosponsored of the Social Security Personal Savings Guarantee and Prosperity Act of 2004, "which will allow any worker, completely voluntarily, to redirect a portion of their payroll taxes to a private account that they will own. American workers will own their account, control the investment choices, and be able to pass unused funds on to their children. Any American that prefers the existing system and benefits can always choose to remain in the current program. And by freeing up a portion of the payroll tax, while removing Social Security from the federal budget process, we will ensure the Social Security safety net is healthy and available for all Americans." |
| Citations: |
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Brownback Cosponsors Social Security Reform Bill (8/13/07)
Press release discussing Brownback's plan for social security reform. |
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Brownback Cosponsors Social Security Reform Bill (8/13/07)
Press release discussing Brownback's plan for social security reform. |
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Brownback;s Plan for Social Security (8/13/07)
Summary of Sam Brownback's speech during which he unveiled his comprehensive Social Security reform plan at the Club for Growth Winter Conference. |
Hillary Clinton on Social Security
More on this candidate
| Stance: | Opposes privatizing social security |
| Description: | According to Clinton, "Social Security is one of the greatest inventions in American democracy, and I will do everything possible to protect and defend it, starting with getting back to fiscal responsibility, instead of borrowing from the Social Security trust fund...The risky scheme to privatize would cost between $1 and $2 trillion. That would undermine the promise of Social Security." She later stated, "Certainly my highest priority is to protect Social Security. I consider it a solemn generational promise. And I was adamantly opposed to the President's plan to privatize Social Security because the very people it would have hurt the most are older women." In 2005, Clinton voted for a resolution amendment saying Congress should reject any Social Security plan requiring deep benefit cuts or a massive increase in debt. However, in 2007, Clinton voted against an amendment, proposed by Senator Jim Demint that would have have prevented surplus Social Security funds from being spent on other government programs. |
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Hilary Clinton (8/13/07)
Summary of Clinton's position of social security reform. |
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Vote Summary: On the Amendment (DeMint Amdt. No. 489 ) (8/13/07)
Vote Summary of the DeMint Amdt. No. 489 to establish a reserve fund for Social Security. |
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Transcript: Let the Conversation Begin Webcast (8/13/07)
Press Release from 1/24/2007 in which Hilary Clinton discusses a wide variety of topics. |
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Retirement Security: Hilary Rodham Clinton (8/13/07)
Summary of Hilary Clinton's stance on social security. |
John Cox on Social Security
More on this candidate
| Stance: | Private retirement accounts, managed care, vouchers, health savings accounts |
| Description: | Social Security has to be preserved, but is unsustainable in its current form. Private retirement accounts are the best hope we have to reform the system. Medicare and Medicaid are even bigger financial time bombs. I support managed care, vouchers and health savings accounts. - John Cox |
| Citations: |
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Social Security and Government Transfer Spending (9/9/07)
Social Security has to be preserved, but is unsustainable in its current form. Private retirement accounts are the best hope we have to reform the system and make it financially available to future generations. Medicare and Medicaid are even bigger financial time bombs. I support managed care, vouchers and health savings accounts. |
Christopher Dodd on Social Security
More on this candidate
| Stance: | Opposes privatization of social security. Supports raising the level at which Americans stop paying into social security. |
| Description: | Opposes privatization of social security. Supports raising the level at which Americans stop paying into social security. |
| Citations: |
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YouTube Debate: Social Security? (7/31/07)
Opposes privatization of social security and would like to raise the maximum income level ($97,500) for which Americans have to pay into social security. |
John Edwards on Social Security
More on this candidate
| Stance: | Supports increasing the income cap for social security taxes. |
| Description: | John Edwards has stated he believes that the income cap for social security taxes should be raised but he does not have a specific plan. He has stated definitively that he believes "the people who make millions of dollars a year ought to be paying payroll taxes on [social security]." He is unclear on how to treat workers who do not make millions but make more than the current cap. |
| Citations: |
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John Edwards Social Security Raise (7/31/07)
Believes "it makes a lot of sense" to lift the income cap on social security taxes. |
Newt Gingrich on Social Security
More on this candidate
| Stance: | Privatize Social Security |
| Description: |
"Personal social security savings accounts owned by workers with higher benefits is the only way to ensure that money meant for retirement will not be spent. With large personal social security savings accounts, even low- and moderate-income workers will accumulate hundreds of thousands of dollars by retirement and will be able to leave a financial legacy to their children or other heirs. Personal social security savings accounts offer workers far greater personal choice, ownership and control than the current system. Personal social security savings accounts that are large enough (around 6%) will also eliminate the long-term deficits of Social Security by shifting so much of those program%u2019s promised future benefit obligations to the accounts that the program will be left in permanent surplus. Despite what has been said, personal social security savings accounts do solve the problem as confirmed by the chief actuary of Social Security, who has scored four personal social security savings account proposals as saving the program from bankruptcy without tax increases or cuts in future promised Social Security benefits. " - Newt Gingrich |
| Citations: |
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Medicare and Social Security Systems for the 21st Century (10/15/07)
But there is an even bigger problem for Social Security than its long-term financing crisis. The program is no longer a good deal for working people today. Even if the program could pay all its promised benefits, the benefits would still represent a low, below-market return on the huge taxes workers and their employers now pay into the program. |
Rudolph Giuliani on Social Security
More on this candidate
| Stance: | Supports private retirement funds as part of social security |
| Description: | Giuliani believes that the country must fix the Social Security system. As a solution, he favors allowing some investment in private accounts. According to Michael Boskin, Giuliani's senior economic policy advisor, "Giuliani agreed that long-term costs and solvency are an issue and that private accounts should be part of the solution," adding that "people should have some choice' in how their accounts are handled." |
| Citations: |
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Inside Giuliani's Economic Thinking (8/13/07)
Article discussing Giuliani's positions on economic issues. |
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Ex-N.Y. mayor Giuliani stops by R.I. to test the waters (8/13/07)
Article discussing Giuliani's campaign stop in Providence, Rhode Island |
Al Gore on Social Security
More on this candidate
| Stance: | Opposes Privatized social security, Proposed a plan to revamp social security system |
| Description: | " If I'm entrusted with the presidency, I will balance the budget every year and pay down our debt every year, putting America on the road to becoming debt free by the year 2013. That'll be good for our economy. And that's the only way we can get ready to meet our obligations through Social Security. Then I'll make sure that we use the budget surplus and the money we save from paying down the debt to save Social Security first. I'll devote all the interest savings from debt reduction to the Social Security trust fund. That way, we can keep Social Security solvent until at least 2050." |
| Citations: |
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Breaking News Al Gore Delivers Remarks on Social Security (7/23/07)
Al Gore announces his plan to save social security in response to George Bush's proposal. |
Mike Gravel on Social Security
More on this candidate
| Stance: | Supports investing money from the Social Security Trust Fund to improve solvency, and allowing workers to leave surplus benefits to their heirs. |
| Description: | "Senator Mike Gravel wants to put real money, rather than borrowed money, in the Social Security Trust Fund, investing it properly and identifying the interests of individual beneficiaries so they can leave their surplus funds to their heirs. He also calls on Congress to stop raiding the Social Security Trust Fund. This is key to ensuring that Social Security will be around long after the Baby Boomers are gone for the next generation of Americans who have paid into it." When asked if part of his social security reform plan included tax increases or benefit cuts, Gravel responded, "no tax increases, we don't need them. All we've got to do is stop the Congress from raiding the $200 billion a year in the surplus and let it go in the fund where it should. Invest it at 8% rather than 2% and stop passing the burden onto our grandchildren." Regarding privatization, Gravel stated that we should first invest the trust fund surplus and "later on if some people want to do it personally they can, I have no problems with that. Let's let the people decide." |
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The Issues: Social Security (8/14/07)
Summary of Mike Gravel's stance on social security from his campaign website. |
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Issues: Social Security (8/14/07)
Summary of Gravel's stance on social security reform. |
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Mike Gravel (8/14/07)
Summary of Mike Gravel's stance on social security reform. Includes video of Mike Gravel answering questions regarding tax increases and privatization. |
Chuck Hagel on Social Security
More on this candidate
| Stance: | Supports raising the current full benefit retirement age, adjusting benefits to those who retire early, and optional voluntary personal accounts |
| Description: | Sen. Hagel stated, "The Social Security system is not in crisis today, but there is clearly a crisis on the horizon. . . In 2018, more money will be paid out of Social Security than comes in. In 2042, the Social Security Trust Fund will be insolvent. Beyond the next 75 years, there is only a black hole of unfunded liability for future generations." To deal with the issue, Sen. Hagel proposed a bill to reform social security. The bill would only affect those Americans who are now under the age of 45 and would only apply to retirement benefits, not survivor or disability benefits. The bill would raise the current full benefit retirement age by one year, from 67 to 68 and would maintain the current early retirement age at 62, but would adjust benefits for those who choose to retire early. Currently, workers who retire early receive 70% of their full retirement benefits. Hagel's bill would provide these early retirees with 63% of the traditional benefit. The bill would also provide the option of voluntary personal accounts. According to the bill, individuals could "opt to invest four percent of their payroll tax into a personal investment account modeled on the same accounts now offered to federal government employees (the remainder of their payroll tax contribution would continue to go into the traditional Social Security system); or they can continue to invest their entire payroll tax in the traditional Social Security system." |
| Citations: |
| 1. |
Sen. Hagel Introduces Bill To Extend Social Security Retirement to 68 (8/14/07)
Article summarizing Hagel's social security reform bill. |
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Speech by Sen. Chuck Hagel (8/14/07)
Speech by Sen. Chuck Hagel Detailing His Social Security Reform Plan |
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Face the Nation: March 6, 2005 (8/14/07)
Transcript of Face the Nation. Sen. Chuck Hagel discusses his social security reform bill. |
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Republicans Float Ideas for Social Security (8/14/07)
Article discussing Sen. Hagel's social security reform plan and compares it to two other proposed plans. |
Mike Huckabee on Social Security
More on this candidate
| Stance: | Supports Bush's plan to allow workers to divert some Social Security payroll taxes into private retirement accounts |
| Description: | In 2005, Gov. Huckabee defended President Bush's proposal for personal Social Security accounts. However, Gov. Huckabee stated, 'I don't think anyone pretends it solves the long-term issue of solvency. It's trying to address methods to improve the system and broaden the base of how it is funded." |
| Citations: |
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Mike Huckabee's Record on Economic Issues (8/14/07)
Summary of Huckabee's stance and record on economic issues |
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Mike Huckabee: Social Security and Medicare (8/14/07)
Republican presidential candidate and former Arkansas governor Mike Huckabee met with The Des Moines Register's editorial board Friday, April 13. Huckabee talks about the problems facing Social Security and Medicare. (Video) |
Duncan Hunter on Social Security
More on this candidate
| Stance: | Allow partial privatization and strength the economy |
| Description: | Duncan Hunter feels that the first thing we do is to strengthen the economy because we need to get a lot of money from high social security withholdings. The next thing we need to do is allow people to take some of their money and put it in private accounts with a better return rate. |
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Duncan Hunter at Iowa Straw Poll on Social Security Reform (10/15/07)
Congressman Hunter talks about Social Security reform with at the Iowa Straw poll. |
Dennis Kucinich on Social Security
More on this candidate
| Stance: | Opposes privatization of social security |
| Description: | "My platform is centered upon a non-negotiable commitment to preserve Social Security against all assaults. I stand to return full Social Security benefits to senior citizens at age 65 -- a rollback from the present age of 67. In addition, I staunchly oppose all efforts to privatize Social Security, thus diverting payroll tax dollars into individual accounts. I am against raising the retirement age, against raising the cap on taxable wages, and against means-testing for benefits." -Dennis Kucinich |
| Citations: |
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Seniors: Social Security (8/15/07)
Summary of Kucinich's stances on issues affecting seniors. |
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Kucinich on Social Security 2004 (8/15/07)
Congressman Dennis Kucinich talks about social security issues |
John McCain on Social Security
More on this candidate
| Stance: | Supports private retirement accounts |
| Description: | McCain believes, "If we don't make some tough choices, Social Security and Medicare either won't be there for our children and grandchildren or we will have had to raise taxes so dramatically to support them that we will have crushed the prosperity of average Americans." McCain says he opposes increasing taxes, rather, he supports allowing workers to have the option of investing at least 20% of their Social Security payroll taxes in private accounts." He also stated that he could support raising the amount of taxable income as part of a compromise to reform social security. McCain said, "if everything is on the table, certainly that should be something that's on the table because, according to polls I've seen, that's the one thing that most Americans agree is probably a viable option, but not by itself but with other changes that need to be made." |
| Citations: |
| 1. |
Meet the Press: Transcript for Feb. 20 (8/21/07)
Transcript from Meet the Press where Russert talks with Democratic Senator Hillary Clinton of New York and Republican Senator John McCain of Arizona. |
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The Daily News Candidate Challenge - John McCain (8/21/07)
John McCain responds to a variety of questions regarding the US economy. |
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The Full McCain (8/21/07)
Full transcript of the interview Ponnuru did with the Arizona Republican senator John McCain. |
Barack Obama on Social Security
More on this candidate
| Stance: | Opposes privatization of social security |
| Description: | Obama stated, "I believe we need to preserve Social Security by stopping any efforts to privatize it. I will work in a bipartisan way to maintain Social Security's solvency for future generations. Social Security is not going bankrupt. With a little genuine bipartisan leadership, we could make the necessary adjustments without gutting the system with privatization. I believe everything has to be on the table that is genuinely intended to strengthen the program - insisting on only one solution as President Bush did is not a recipe for bipartisan cooperation. We can close the gap with an equitable mix of benefit and tax changes similar to those recommended by the bipartisan Greenspan Commission in 1983. The critical element in saving Social Security is leadership that puts aside ideology in favor of solutions - that is, leadership that can bring together different interests toward a shared purpose. I will provide that leadership." Obama regards raising the retirement age, cutting benefits generally, decreasing benefits for higher income recipients and lifting the cap on income subject to social security taxes as possible solutions that should be considered. |
| Citations: |
| 1. |
The Daily News Candidate Challenge - Barack Obama (8/22/07)
Barack Obama answers a variety of questions on Immigration, the Economy, and National Security. |
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Barack on This Week with George Stephanopoulos (8/22/07)
full interview of Barack Obama on This Week with George Stephanopoulos |
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YouTube Debate: Social Security? (8/22/07)
Candidates answer a question regarding social security during the CNN You Tube debate |
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On the Issues: Seniors (8/22/07)
Obama's position on issues affecting seniors from his senate website |
Ron Paul on Social Security
More on this candidate
| Stance: | Allow people to opt out of social security. Reduce spending abroad to increase social security funds. |
| Description: | Representative Ron Paul believes the social security program is in bad shape and that "young people" should be able to "opt out" of the social security program so that they can attempt to prepare for retirement on their own. He also believes the U.S. should reduce foreign spending so that it will be able to honor social security benefits in the future. |
| Citations: |
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Ron Paul on Social Security, WMUR 4-27-07 (7/30/07)
The social security system is in bad shape. Allow people to opt out of social security. |
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Final Vote Results for Roll Call 450 (7/30/07)
Voted yes to reduce tax payments on social security benefits. |
Tom Tancredo on Social Security
More on this candidate
| Stance: | Supports partial privatization |
| Description: | "The best suggestion I have heard is to switch from a defined benefits approach to a defined contribution approach with payroll tax funded private investment accounts. These accounts would be made available to young workers and function similarly to 401Ks." - Tom Tancredo |
| Citations: |
| 1. |
Social Security (10/3/07)
Tom wants partial privatization. |
Fred Thompson on Social Security
More on this candidate
| Stance: | Supports partial privatization |
| Description: | Thompson supported a partial privatization plan for Social Security during the 1990s while he was in the Senate. While he has not revealed details of his current Social Security plan, he has said that it depends on whether current recipients will be willing to sacrifice a bit on their benefits for future generations. |
| Citations: |
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From the Courthouse to the Whitehouse (9/30/07)
Fred Thompson supports Bush's social security plan. |
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Another Bold Step Forward: The Bipartisan Senate Social Security Reform Plan (9/30/07)
Thompson supports this. |
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Fred Thompson at the Orlando Debate (4 of 5) (10/26/07)
Fred Thompson addresses the uncertain future of Social Security and Medicare, and making some necessary and responsible decisions about how to fix them. |
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