Ed Royce: “the 106th Congress started the day with a nationwide consensus that the health of social security is in jeopardy.…”

“the 106th Congress started the day with a nationwide consensus that the health of social security is in jeopardy. Millions of American seniors have come to depend on social security, and it is our responsibility to see that a solution is found to address this looming crisis. In the early 1980s, social security faced a similar, more immediate crisis. At that time projections showed that social security would be insolvent by 1983. Within months of that projected insolvency, reforms were enacted that provided for the continued health of the program, and included in these reforms were tax increases which would result in social security receiving more in revenue than it would pay out for benefits for several decades. The surplus was to be placed in the social security trust fund, where it would earn interest and be saved for future retirees. American seniors were assured that the system was saved at least temporarily, and that the massive reserve account being created would ensure the fund's solvency and American seniors' security. It seemed that the crisis had been at least avoided temporarily. Unfortunately, the surplus that was supposed to be placed in trust, ready for American seniors, was spent.”