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Barbara Ambrosius, of Cincinnati wrote to Congressman Portman; "Now that the elections are over is this the time to push for tacking on the "Offset/Windfall" provision to the tax cuts that are sure to take place??? This seems to be a common practice to get passage of a difficult bill. We are tired of being put off. Surely if the tax cut is to benefit the wealthiest wouldn't it be nice to help the "poorest" who are struggling to get by."
Congressman.Portman replied on Nov.25, 2002. " I appreciate your comments and I understand the financial impact of the GPO/WEP on retirees on fixed incomes. I have heard from other constituents with similar views , and I am trying to help with these issues. I have also conveyed my concerns with the GPO and the WEP to the Congressional leadership. The estimated cost to fully repeal the GPO/WEP would be about $50 billion. Consequently this would have a negative effect on the solvency of Social Security which as you may know, will begin running a deficit in 13 years due in part to the impending retirement of the baby boomers. Nevertheless, I noted your suggestion to tie the GPO/WEP to any proposed tax cut legislation. I brought this suggestion to the attention of the Ways and Means Committee which has jurisdiction over these issues, to consider as it develops the agenda for the 108th Congress."
Note: The $50 billion return of benefits to retirees is over many years and would be the perfect “economic stimulus” package because all of the money would go straight back into the economy in the form of spending.
Three cheers for Barbara Ambrosius of Cincinnati for sending a great e-mail to Congressman Portman with a solid suggestion. We in Cincinnati have been blessed with Rep. Portman and Rep. Chabot both of whom have seen us several times and listened to us patiently as we discuss the need to change the GPO and WEP. We do appreciate their time. Both have cosponsored Rep. Jefferson’s bill HR 664 and now we hope both will work toward passage of new bills introduced in the 108th Congress.
"Rob Peter to Pay Paul" seems to be the philosophy that Congress is following as related to Social Security.
We asked the staff in Rep. Chabot's office and Sen.Voinovich’s office the following questions:
Q. When did Congress start dipping into Social Security revenues?
A. Because of changes to the way in which information on the federal budget is recorded (beginning in1962) the earliest date we can say (with certainty) is 1964.
Q. How much money has been borrowed from the Social Security funds to pay for other government spending?
A. According to a chart published by the Congressional Budget Office, for Fiscal Years 1962 through FY 2001 the amount borrowed was approximately $700 Billion.
Q. Have any of the funds taken from Social Security been paid back to the program when the federal budget ran a surplus?
A The short answer is no. But it is extremely important to note that this is not the main problem. The reason is that under the unified (or overall) budget, cash inflows and out flows for Social Security are indistinguishable from regular tax revenue. Government can use excess funds to pay down the publicly held debt or money the government owes outside individual entities. Often time excess funds are not used for debt reduction but rather to pay for other government spending. It is for this reason that Senator Voinovich has been a consistent supporter of the "lock box" which would forbid Congress from spending Social Security for purposes other than debt reduction, except in times of war or recession.
“These payroll taxes are paid to the federal government and along with other forms of revenue become part of the government's operating cash pool commonly referred to as the US. Treasury. The trust funds receive credit for these monies in the form of federal securities issued to the Social Security trust funds. The trust funds do not hold the money but are accounts. The trust fund balances, like a bank account, represents a form of IOU, a promise that when money is needed to pay Social Security benefits the government will obtain resources equal to the value of the securities. Generally speaking the federal securities issued to any federal trust fund represents “permission to spend." Congressional Research Service Washington DC 20540-7000. www.crs.gov
The explanation that our Social Security tax is similar to a bank account is not quite accurate. Here is the difference. When we need to write a check the bank will honor the amount because we have deposited the funds and no one has spent our money. There is an on going spending process by Congress. The rate that Congress spends the Social Security "surplus" is why there will be a deficit in 13 years. Yes the "baby boomers" will be retiring in a few years, BUT AT THIS TIME they are still contributing to the Social Security fund. So if Congress is spending the retirement contribution that the baby boomers are making now it is no wonder we will have a deficit in 13 years.
Is it any wonder we are being warned that Social Security will be in financial trouble in 13 years? Members of Congress need a course in Accounting 101. Senator Voinovich is right, we do need a "lock box” to protect our contributions. And here are a few newspaper headlines from past years that prove the point.
“Millions paid to dead people”
“Fugitives improperly collect Social Security”
“$450 Billion U.S. spending bill packed with Pork, Congress OK’s hundreds of pet projects”
It’s time to close the lid on the Congressional Pot of Gold.
SUCCESS WAS OURS IN OUR LETTER WRITING CAMPAIGN
By March 2001 your letters had succeeded in convincing 10 of our 19 Ohio Representatives to cosponsor the Jefferson HR 664 bill. In April we added 3 names, May, June and July gave us 3 more names for a total of 16 cosponsors. In April, 2002 Sen.Voinovich agreed to cosponsor the Mikulski S 611 bill, followed by Sen. DeWine in June, 2002.
We are now working with the 108th Congress and we hope all the bills will be reintroduced. Starting in the first week of February and the first week of every following month we would like to see letters sent to those who control our finances, our elected officials. Write your own representative, plus Rep. Thomas, our Senators, Senator Bill Frist the new Senate leader, and this time also write to President Bush. Senator Frist has influence in what bills are considered for review. President Bush should be asked to " LEAVE NO SENIOR BEHIND”, as he proposes his economic stimulus bill to Congress. Here is an important fact to include in your letters. If you take the number of Ohio public service retirees affected by GPO/WEP in 2001 and multiply that by the annual Social Security reductions due to the GPO/WEP the annual loss to Ohio public service retirees is estimated at $341.8 million. That figure should be impressed on our Representatives and Senators. A solid reason why this year is the year we should receive all our Social Security. (Offset/Windfall estimates number of persons and dollar amount from published material).
Facts to remember: Social Security is getting low in funds because Congress uses the money for other projects. If the $700 BILLION Congress has borrowed was still in our fund there would be no Social Security financial crisis. We contributed our money to Social Security with the understanding we would receive it in our retirement years.
Contained in the last two Offset/Windfall Newsletters you were given reasons why it is unfair to keep the GPO/WEP. We give to a state fund and follow the rules set by the state legislature. The U.S. government needs to end all waste. For example remove all credits cards from employees that use them for personal use, recover the more than $1 million in equipment lost or stolen from Los Alamos National Laboratory, supervise the departments that fail to protect important computer systems, etc. A Cincinnati Enquirer article reported on December 4, 2002 "Congress passed about $20.1 billion in pork last year, a figure that doesn't include plain waste, fraud, bloat and mismanagement or $140 billion during the last decade."
CURRENT NEWS
Did you catch Sue Shaw, Ellsworth, Maine, on the CBS Evening News on January 8, 2003? Sue is a tireless worker on behalf of GPO and WEP repeal and has contributed a few news items to our Newsletter over the past year. On CNN during a call-in show, Congressman Rob Portman, R- Ohio, was questioned about the GPO and WEP by a firefighter who lost half of his Social Security benefit, and is quoted as saying, “… he believes change will come as a result of Social Security overhaul, and…he believes if a person earned the Social Security benefit they should be able to get all of it.”
COST OF DOING BUSINESS
As we start another congressional session, the 108th Congress, we invite all who see our Newsletter and web site and are affected by the GPO and/or WEP to join us in writing their representatives both in the House and in the Senate, President Bush, Senator Frist and Rep. Thomas We invite you to join our group receive our Newsletter and updated information. The more members we have and the more petitions with your signature, the stronger the influence in Congress. We have no dues but expect everyone to make a comfortable donation to cover the printing of the Newsletter, run off necessary material at the library, purchase stamps for mailings to Congress or other organizations networking with us for the same common cause. We receive no compensation and absorb the cost of mileage, office supplies, long distant phone calls, weekly hours to work on this project etc. We suggest even if you are not near retirement we need your help. If you would like to be on our mailing list you may contact us at OFFSET/WINDFALL, 8968 Lyncris Dr. Cincinnati, OH 45242, or at ssoffset@hotmail.com
Send your GPO and WEP repeal mail to;
President George W. Bush
The White House
1600 Pennsylvania Ave. NW
Washington, D.C. 20500
Senator Bill Frist
Senate Majority Leader
416 Russell Senate Office Building
Washington, D.C. 20510
Congressman Bill Thomas, Chairman
Committee on Ways and Means
1102 Longworth House Office Building
Washington, D.C. 20515
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