-Caveat Lector-

http://www.drudgereport.com/

Clinton wants to use Social Security to pay debt
Updated 11:34 AM ET October 23, 1999
By Steve Holland

WASHINGTON (Reuters) - Raising the stakes in the battle over the federal
budget, President Clinton said Saturday he will propose legislation to use
Social Security surpluses to pay down the national debt.

The idea, as described by Clinton in his weekly radio address, is to pay
down more than $3.1 trillion in public debt over the next 15 years as part
of a plan that would make the United States debt-free for the first time
since 1835.

The billions saved in interest payments to service the debt would then be
diverted to the Social Security Trust Fund to ensure its solvency to 2050.

"This is the first big step toward truly saving Social Security," Clinton
said.

It is a proposal he floated earlier this year, but it has failed to find
support in the Republican-led Congress.

By sending the legislation to Capitol Hill on Monday, he is trying to revive
the proposal in the context of budget negotiations with Republicans.

The two sides are accusing each other of making budget proposals that would
tap into Social Security surpluses, a practice that has been done for years
but which is unpopular now during a time of budget surpluses.

Republicans have proposed Social Security "lockboxes" of their own to
protect the entitlement program from being raided to pay for current
programs.

"We believe the government should 'stay the course' and live within its
means," said Sen. Pete Domenici of New Mexico in the Republican radio
address.

"By doing so, we can preserve the Social Security surplus, pay down our
national debt, (and) keep the budget balanced, while investing in priorities
such as education and health care," he said.

Domenici, chairman of the Senate Budget Committee, argued that the existence
of a relatively small budget surplus "doesn't mean we should go on a
spending spree."

He said Clinton has proposed new spending in a wide variety of areas but
that "not everything can grow."

"Over the next few days the president will have to choose between
cooperation or confrontation," he said. "We have pledged to cooperate."

On Social Security, Democrats insist Republican plans do not extend the
solvency of Social Security by a single day. At this point Social Security
is projected to go bankrupt in 2034, unless reforms are made, because of the
costs of benefits for baby boomers when they retire.

White House economic advisor Gene Sperling said if the Social Security
surpluses were entirely spent, interest payments on debt held by the public
would be $163 billion in 2011.

But devoting a decade of Social Security surpluses to debt reduction would
slash the debt by $2.1 trillion, cutting interest payments to $56 billion.

That would save $107 billion that would be transferred into the Social
Security Trust Fund in 2011, and growing amounts through 2016. Transfers
would stay at the 2016 level through 2044.

"What it is, it is generating more revenues for the future by saving now,
having lower interest rates, high savings," Sperling said.

Clinton, with little more than a year left in his presidency, said his plan
represents a historic opportunity to protect Social Security for future
generations.

"It will take the trust fund out beyond the life span of the baby boom
generation -- no gimmicks, no budgetary sleight of hand, just the right
choices that really add up to protecting the Social Security surplus," he
said.
http://news.excite.com/news/r/991023/11/clinton-socialsecurity

Folks, If I commented my blood pressure would rise
and that's a No No;  my Dr. has instructed me to
exercise great restraint when I come by information
such as this.

Bard
We don't need a 3rd Party;  we need a 2nd Party!

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