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Show THE VOICE OF BUSINESS Political courage in short supply when if comes to Social Security By Richard L. Lesher, Pres.. Ch a mbe r of Com m erce of the United States To House Speaker Tip O'Neill, it was "despicable. ..a rotten thing to do." The Brookings Institution, a bastion of liberal economics, said it "gives rites to the idea of a social safety net." Rep. Claude Pepper (D-Fla.) called it "insidious and cruel." "It" is something few politicians in Washington today want to touch with a ten foot pole-President Reagan's plan to save the Social Security system from bankruptcy. The Administration's recent announcement that it wanted to perform some surgery on the most sacred of all federal cows generated, according to one Republican Congressman I talked to, "the fiercest public protest on any issue I have faced since coming to Congress." The uproar has sent Congressmen of all parties and philosophies scurrying for cover. But sooner or later-and it had better be sooner-Congress will have to come out of hiding and make some changes in the Social Security system. In the words of Health and Human Services Secretary Richard Schweiker, the failure of Congress to act means that "the system would go broke as early as Fall, 1982," Most members of Congress agree that something must be done to shore up the Social Security trust fund, which is projected to be at least $111 billion in the red by 1987. But ask them what should be done, and that's where the agreement ends. They might start by asking themselves them-selves how we got into this mess in the first place. Very simply, it was Congress that put us there through a few good intentions and a lot of political expediency. Social Security was established in 1935 to provide a supplemental income for retirees when they reached the age of 65. But since then, a succession of Congresses have added to the system a number of costly additional programs such as Medicare, disability insurance, early retirement benefits, cost-of-living adjustments and others. No wonder that today's $141 billion yearly price tag for social security cash benefits will swell to at least $200 billion by 1984 and $300 billion by 1989! And with low birth rates and ever-increasing numbers of Americans entering the ranks of the elderly, the system's financial health will be further jeopardized by a steadily decreasing ratio of beneficiaries of contributors. All of this adds up to one heck of a problem, a problem for which Congress, in the past, has had only one answer-raise taxes. But American workers and businessmen, who split the Social Security payroll tax 50-50, are still reeling from one of the largest tax increases in history (up to 24 percent for some taxpayers) which took effect this year. And, under the terms of legislation passed by Congress in 1980, those taxes will continue their steep climb right through 1987. Can our free enterprise economy, already buckling under the weight of prohibitive taxation of its every activity, withstand even greater Social Security tax hikes? The answer is obvious. We have only one alternative. Congress is going to have to demonstrate demon-strate the same kind of political courage that it was finally able to muster when it passed President Reagan's budget. A number of changes in various Social Security bent programs, however politically : popular they may be in the short r J can no longer be avoided. These changes should inch: elimination of benefits for coll students and some curtailment of c of -living adjustments. Also, it's at 1 time that some 5.5 million federal, sL and local employees who do presently contribute to Social SecuJ on their government pay be require -do so. This change alone would hoover ho-over $15 billion into Social Securi : coffers in the first year. ,1. Finally, Congress should p.. President Reagan's proposal to al -all American workers the right ' establish tax-exempt individ -retirement accounts, so that they : better provide for their own retirem''; -and let Social Security reassume ; original role as a supplement to pri7: sources of retirement income. According to the latest NBC Ne": Associated Press survey, 79 percen s the American people have little or confidence that they will actus receive the Social Security bene which will be due to them ir retirement. That's the sorry legacy the inability of Congress thus far demonstrate the fiscal restraint i-political i-political courage necessary to k Social Security on sound finai : footing. It is in interest of every wori: retiree and business in America convince Congress to join Presid, Reagan now in a bipartisan efforL forge a Social Security reform p which will restore financial solvency, the system continue to provide a D . of income support for our natk elderly citizens and hold the line additional payroll tax increases. |