Ralph Lee Abraham: “I was about to ask what business we were on, and the Chair has answered the question. What I will do now is talk for a…”

“I was about to ask what business we were on, and the Chair has answered the question. What I will do now is talk for a few minutes about the reasoning behind the amendment I brought on behalf of myself and Senators Domenici, Ashcroft, Lott, Nickles and several others, the so-called Social Security lockbox. First, I think it is important for our constituents to understand exactly what process happens now and what has been happening to their Social Security payroll taxes. If you are a working American, Social Security payroll taxes are taken out of your paycheck. Most Americans rue that little FICA box, as they know it means a reduction in the amount of take-home pay they have. The money that falls under the Social Security component of the FICA tax goes into the Social Security trust fund. From there it is used to pay Social Security benefits to retirees. Right now, however, the Social Security trust fund is taking in more money in taxes than it is paying out in benefits. We are doing that because in 1982 and 1983, as a result of the Bipartisan Commission's recommendations, we came up with an increase in the payroll taxes, the goal of which was to begin to build a surplus that could be used to meet the retirement demands, in terms of the system, of baby boomers. As a result, over the next 10 years, starting this year, Social Security will build up a surplus of $1.8 trillion.…”