Thomas Daschle: “we all understand how critical the Social Security Program is to senior citizens. It is now estimated that 48 percent of…”

“we all understand how critical the Social Security Program is to senior citizens. It is now estimated that 48 percent of all seniors today would live in poverty were it not for Social Security. It is a critical program for all of us and for our parents. It is a program of extraordinary import to people in rural and urban areas alike. Obviously, over the course of the years, the Social Security Administration has seen fit to offer cost-of-living adjustments in order to ensure that the purchasing power of our seniors is not eroded. Every year, that cost-of-living adjustment is based on the consumer price index for urban wage earners and clerical workers. Unfortunately, over the last couple of years, that index has been very low. As a matter of fact, in 2003 the cost-of-living allowance provided only a 1.4 percent increase in Social Security benefits. That amounts to an average monthly benefit of about $13, from $882 to $895. The growth in the Medicare premiums and out-of-pocket health care costs for retired individuals on fixed incomes far exceeded that meager cost-of-living adjustment. So we find ourselves in a situation where a number of our colleagues have suggested that perhaps one way to deal with what they call Social Security reform is to reduce the cost-of-living adjustment; in fact, in some cases to eliminate the cost-of-living adjustment. That is the purpose of this amendment.”