March 16, 2011
The Honorable Richard Shelby
304 Russell Senate Office Building
Washington, DC 20510
Dear Senator Shelby:
During a recent episode of NPR’s “All Things Considered” you said that last year, Social Security paid out more than it received in benefits than it received in contributions. You went on to say that this is “… the first step of a long, slow march to insolvency if we don’t do something about it.”
However, this is not the case. The government bonds that comprise the Social Security trust fund allow the program to maintain full solvency through the year 2037. And even if nothing is done at that point, the program will still to be able to pay benefits of around 75 percent from then on. This was the point behind taxing workers 2 additional percentage points than was needed to pay for Social Security in 1982. If the intent was not to pay for future benefits, what other purpose would there be for the additional taxes?
In addition to representing the people of Alabama, you are also a leader in the Senate. You therefore have the responsibility to know the facts about this essential program and to present them accurately. If I can provide any additional background on this vital program, I will be happy to assist.
