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PRESS RELEASE FROM AMERICANS FOR TAX REFORM
Contact: John Kartch ( jkartch@atr.org or 202-785-0266)

[View Printable Adobe Acrobat File]

5/19/05

Social Security Fact of the Day
Social Security cannot afford to pay all of the benefits it has promised. Beginning in 2017, it will run cash deficits that get bigger every year.

Many opponents of personal accounts often wonder what the reformers’ big hurry is. After all, the Baby Boomers won’t retire until 2009, Social Security won’t run out of cash until 2017, and the system will theoretically be able to pay full benefits until 2041. What they ignore from this analysis is the ever-declining amount of flexibility available to finance a transition to a fully-funded Social Security system. In 1964, nearly two out of three dollars of federal spending went to discretionary spending like the military and homeland security. By 1984, it was down to 45%. Today, it is 39% and falling. Soon, Social Security and the big entitlements will overwhelm defense, national parks, and other discretionary spending. With the diminishment of annual, flexible spending decisions, the ability to finance the transition to PRAs will be lost.

Social Security has a problem, and we need to fix it. Personal accounts are the solution.

Big Entitlements Like Social Security Are Eating Up Federal Spending
Source: Congressional Budget Office

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Americans for Tax Reform is a non-partisan coalition of taxpayers and taxpayer groups who oppose any and all federal and state tax increases.  For more information, or to arrange an interview with Mr. Norquist please contact John Kartch at (202)785-0266 or by email at jkartch@atr.org.