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Commission's Guiding Principles Raise Questions

By Michael Plumer, Deputy Director of Legislative Affairs,
TREA Senior Citizens League

Government commissions have a way of steering their work to certain conclusions.  The President's Social Security Commission is expected to make their next report soon.  Their recommendations will be compromised by a narrow focus on private accounts, rather than on a comprehensive package of solutions.  Like other government commissions, this one has virtually predetermined their final recommendations by the "guiding principles" under which they operate.  One principle mandates personal retirement accounts for example, while another rules out higher payroll taxes, which may be required in the future no matter how badly we want to avoid them.

In a like manner, in 1994, The Commission on the Social Security Notch also had an arbitrarily narrow set of parameters that virtually guaranteed their final conclusion.  They stated, "The Commission, therefore approached its mandate with an explicit understanding that, if it were to recommend remedial action regarding the 'Notch' issue, it would not recommend financing it through an invasion of the Social Security trust funds or any use of general revenues.  The Commission concluded that it would have to recommend financing any changes with an increase in Social Security taxes or a reduction in some benefits."

The Commission's guidelines ruled out the normal source of financing for Social Security benefits -- Social Security Trust Funds -- as a source of financing for Notch Reform.  Indeed ruling out the use of "general revenues" all but ruled out any spending at all.  The guidelines further ensured the final conclusion by mandating benefit cuts or tax hikes as the only possible fix.  Their recommendations would have been so politically unpopular that widespread opposition would have been guaranteed.  The Notch Commission was thus able to ignore evidence and conclude that "benefits paid to those in the 'Notch' years are equitable, and no remedial legislation is in order."

Fortunately most Commissions only make recommendations NOT legislation.  Your elected Members of Congress make the laws, and they, not commission members, must face you come election time.  We urge you to contact your Members of Congress to ask them to give due consideration to Notch Reform when considering any reform of the Social Security program in 2002.

For the fact sheet on President Bush's Social Security Commission listing all six of the "guiding principles," visit online www.ssa.gov/ssacommission.htm.

To sign our Petition to Members of the Presidential Social Security Commission click here:  http://action.tscl.org/PresidentialSSCommission.asp

November 2001


This article first appeared in Volume 6, Issue 11 of `The Social Security and Medicare Advisor` newsletter (November/December 2001). To receive future editions of `The Advisor` in its special, free e-mail version, please click here.


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