Congressional Response: Representative Wally Herger (R-2nd, CA) Responds To Your COLA Petition

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Congressional Response: Representative Wally Herger (R-2nd, CA) Responds To Your COLA Petition

Thank you for contacting me regarding Social Security’s Cost-of-Living Adjustment (COLA) and your support of H.R. 2262. I very much appreciate your thoughts and guidance on this matter.

As you may know, the Social Security system faces serious long-term structural problems, and I strongly believe that the President and Congress need to work together to preserve and protect Social Security -- it is the right thing to do. In fact, one of my top priorities in Congress is to fight to ensure the long-term viability of Social Security for this generation and the next.

H.R. 2262, the Consumer Price Index for Elderly Consumers Act, would use the Consumer Price Index for the elderly (CPI-E) compiled by the Bureau of Labor Statistics when calculating the Social Security COLA. Currently, the Social Security COLA is determined using the general Consumer Price Index. Supporters of H.R. 2262 believe that the CPI-E provides a more accurate measure of the costs incurred by the senior population.

While I appreciate your suggestions regarding how Social Security’s annual COLA is determined, I believe this is an issue that should be addressed within the process of comprehensive reform of the Social Security system. Because Social Security is a “pay-as-you-go” system - meaning that current Social Security tax revenues are used to pay current beneficiaries -- there is some concern that increasing COLAs without making other reforms to the system would drain funds out of the program and hasten Social Security’s pending insolvency.

Additionally, I support repeal of the tax increase imposed on Social Security benefits under President Clinton. I voted against this tax increase at the time and I still believe it is bad policy and an unnecessary burden on Social Security recipients. Repeal of this tax would allow seniors to keep more of the Social Security benefits they have earned.

As a member of the House Committee on Ways and Means, rest assured that I will continue to fight to protect the integrity of the Social Security Trust Fund and to ensure the long-term solvency of this vital program. As Congress continues to consider the important topic of Social Security reform, please know that I will be keeping your views and suggestions uppermost in mind.

Thank you for taking the time to sign The Senior Citizens League's petition. I look forward to your continued correspondence.

Sincerely,
WALLY HERGER
Member of Congress

February 2004