The First Cocktail in London by Tom Conrad

Pete Domenici of New Mexico, the senior Republican on the Budget Committee, suggested that using Social Security funds may not be a bad idea, considering the weak state of the economy.ĭomenici, who carries significant influence within the GOP, said he has spoken with at least 15 economists about the policy of setting aside the Social Security surplus. So far, Bush and most Republicans have said they do not believe that will need to be done. In addition, the CBO has estimated that Social Security money may be needed for other obligations in 20. But that does not count spending increases put forth by the administration - including $18.4 billion more for defense. Conrad and other Democrats have accused Bush of 'over-promising' when he made his pledge to protect the funds.īudget numbers released in August by the nonpartisan CBO project that the government will fall just short of using Social Security funds in fiscal 2002, Bush's first budget year. It could slow down the pace of paying off long-term debt.īoth Bush and members of Congress from both parties had earlier pledged to use Social Security funds solely for paying down long-term federal debt, out of concern for the retirement program's long-term viability.Ĭoncern over the future of Social Security played a prominent role in the 2000 presidential campaign, and it could re-emerge as a key factor in next year's congressional mid-term elections.Money taken out of the trust fund would be credited to the Social Security account.

Social Security benefits are not affected.

If Congressional Budget Office estimates are correct and the government needs to borrow from the Social Security trust fund, here are the effects of the move: *Includes Social Security trust funds as well as the net cash flow of the Postal Service Here's the math behind the Congressional Budget Office prediction: If revenues fall short, the government has customarily borrowed from Social Security. figures its annual bottom line by including all tax revenues - including taxes that can only be used to pay Social Security benefits. Kent Conrad, the Democratic committee chairman from North Dakota, told Daniels.Ĭonrad was referring to the White House position that the federal government can afford to pay for Bush's proposals to increase spending in such areas as defense and education without dipping into the Social Security surplus.

'Frankly, when you come before this committee and say that we can honor all the commitments for 2002, I tell you, I think it defies logic and defies truth,' Sen. The sharpness of the debate was evident at a Senate Budget Committee hearing Thursday that offered Democrats - who now control the chamber - their first opportunity to question White House budget director Mitch Daniels since the White House and the Congressional Budget Office released their mid-session budget projections.

The First Cocktail in London by Tom Conrad