Ehrlich on Washington column, April 26, 1998

NEWS FROM Robert L. Ehrlich, Jr. Second Congressional District of Maryland 1 407 York Road, Suite 304 Lutherville, Maryland 21093 315 Cannon House Office Building Washington, D.C. 20515 EHRLICH ON WASHINGTON Week of April 26, 1 998 By Congressman Robert L. Ehrlich, Jr. STARTING THE GREAT SOCIAL SECURITY DEBATE By a three-to-two margin, studies show that more young Americans believe in the existence of UFOs than in the ability of Social Security to help finance their own retirement. What does that mean? There is enough in the Social Security Trust Fund to take care of retirees today and for the next 30 years. However, by 2029 the trust fund will be exhausted, and FICA taxes will only cover 75 percent of retirement benefits owed under the system. While everyone from the President to radio talk show hosts are talking about shoring up Social Security, and there is a consensus that something needs to be done, the exact nature of what that solution could or should be remains unclear. While we all agree about the need to strengthen Social Security for future retirees, no single plan has met the nation's approval. Even the bipartisan, presidentially-appointed Advisory Council on Social Security, which agrees on the need to provide long-term solvency and protection for Social Security, is divided over the best way to provide this solution. For instance, some believe individuals ought to be allowed to direct a portion of their Social Security funds into safe, high yield investments. If today’s wage earners can make more money by privately investing their retirement tax dollars in the stocks, bonds, or even CDs, the argument goes, then seniors should be able to make that choice. However, the debate on this