Tom Coburn on Social Security Republican Jr Senator; previously Representative (OK-2)

Give Americans real control over their retirement accounts

Black men are being penalized by the Social Security system

Voted YES on establishing reserve funds & pre-funding for Social Security.

1. require that the Federal Old Age and Survivors Trust Fund be used only to finance retirement income of future beneficiaries;
2. ensure that there is no change to benefits for individuals born before January 1, 1951
3. provide participants with the benefits of savings and investment while permitting the pre-funding of at least some portion of future benefits; and
4. ensure that the funds made available to finance such legislation do not exceed the amounts estimated to be actuarially available.

Proponents recommend voting YES because:

Perhaps the worst example of wasteful spending is when we take the taxes people pay for Social Security and, instead of saving them, we spend them on other things. Even worse than spending Social Security on other things is we do not count it as debt when we talk about the deficit every year. So using the Social Security money is actually a way to hide even more wasteful spending without counting it as debt. This Amendment would change that.

Opponents recommend voting NO because:

This amendment has a fatal flaw. It leaves the door open for private Social Security accounts by providing participants with the option of "pre-funding of at least some portion of future benefits."

This body has already closed the door on the President's ill-conceived plan for private Social Security accounts. The opposition to privatization is well-known:
• Privatizing Social Security does nothing to extend the solvency of the program.
• Transition costs would put our Nation in greater debt by as much as $4.9 trillion.
• Creating private accounts would mean benefit cuts for retirees, by as much as 40%.
• Half of all American workers today have no pension plan from their employers. It is critical that we protect this safety net.

Voted YES on reducing tax payments on Social Security benefits.

Voted NO on strengthening the Social Security Lockbox.

Create personal retirement accounts within Social Security.

OFFICIAL CONGRESSIONAL SUMMARY:

• Amends Social Security Act to add a new tax-exempt "Personal Retirement Account Program".
• Designates a personal retirement account for each such individual that is funded by deposits from amounts in the Federal Old-Age and Survivors Insurance Trust Fund not otherwise required for immediate withdrawal, and by rollover and other contributions made by eligible individuals.
• Directs the SEC to report to Congress on personal retirement account reinsurance.
• Amends the tax code to provide for: (1) annual $300 contributions (tax credits) on behalf of each eligible individual to a personal retirement account; and (2) an excise tax on excess contributions to such accounts.

SPONSOR'S INTRODUCTORY STATEMENT: One of the things I have consistently heard from folks back home is the very simple idea that the first part of saving Social Security is making sure that Social Security taxes stay with Social Security. That is what this bill does because it takes the Social Security surplus, whatever that happens to be, and simply rebates it back to the people paying Social Security taxes, not to go out and fix up the car or buy a refrigerator with it, but instead to go into their own personal Social Security savings account that would be held by a fiduciary like the local bank.

The individual could not get their hands on the money until they turn 65, but they would get a monthly statement and for the first time, because of the private property rights that come with an account like that, for the first time have a firewall created between political forces in D.C. and their Social Security surplus.

LEGISLATIVE OUTCOME: Referred to the House Committee on Ways and Means; never called for a House vote.

Supports private retirement accounts.

The Christian Coalition voter guide [is] one of the most powerful tools Christians have ever had to impact our society during elections. This simple tool has helped educate tens of millions of citizens across this nation as to where candidates for public office stand on key faith and family issues.

The CC survey summarizes candidate stances on the following topic: "Allowing individuals to invest a portion of their Social Security tax in private retirement accounts"

Rated 8% by ARA, indicating a pro-privatization stance.

Scoring system for 2014: Ranges from 0% (supports privatization and other market-based reforms) to 100% (supports keeping federal control over Trust Fund and Social Security system).

About ARA (from their website, www.RetiredAmericans.org):

The Alliance for Retired Americans is a nationwide organization, founded in May 2001, with now over 4.2 million members working together to make their voices heard in the laws, policies, politics, and institutions that shape our lives. The mission of the Alliance for Retired Americans is to ensure social and economic justice and full civil rights for all citizens so that they may enjoy lives of dignity, personal and family fulfillment and security.

• Alliance members visit the polls in record numbers. We use the power of our membership and our Congressional Voting Record to educate and mobilize seniors to elect leaders committed to improving the lives of retirees and older Americans.
• We are effectively warding off cuts to our most important social programs like Social Security and Medicare. Our Human Chain Against the Chained CPI events in the summer of 2013 took place in more than 50 cities and mobilized support for stopping this cut to earned Social Security benefits.
• We blocked the privatization of Social Security with our Social Security "Truth Truck" delivering 2.1 million petitions to Members of Congress and other tactics.
• The Alliance makes its voice heard on the issues that matter not just to current retirees, but to all Americans who hope to retire one day. We were a leading voice in recent debates considering changes to Medicare, like replacing guaranteed benefits with a voucher system, and remain so in 2014.