Vow To Protect Reserves Is Called A 'Symbolic Goal'
By Jonathan Weisman And Richard Benedetto, USA TODAY
Tuesday, August 28,2001
Washington-The White House is backing away from its pledge to protect every cent of Social Security reserves in the face of a report today that the government is tapping Social Security taxes for other programs.
The non-partisan Congressional Budget Office will show that the government has to use $9 billion of Social Security reserves to cover the fiscal year ending Sept. 30. The White House estimated last week that the government will run a $1 billion surplus aside from the Social Security surplus. The Democrats say the dwindling surplus was caused by President Bush's tax cut. The White House says the tax cut will revive the economy and boost the surplus.
In February, the CBO predicted the government would run a $125 billion surplus on top of reserves for Social Security. But that surplus was consumed by the tax cut enacted in June and the loss of tax receipts stemming from a weak economy, the CBO now says.
Current retirees aren't affected. The CBO says Social Security is still $153 billion in the black for 2001.
Bush and Congress had vowed that all Social Security taxes left after paying current Social Security beneficiaries would be used to reduce the national debt or overhaul the retirement system. But now that those pledges appear to have been broken, White House Budget Director Mitch Daniels cautioned Congress not to trim the president's priorities.
"It would be a big mistake to shortchange fundamentals like defense in pursuit of a symbolic goal," Daniels said Monday.
Virginia Gov. Jim Gilmore, chairman of the Republican National Committee, unveiled a TV ad campaign that accuses Democrats of misleading attacks on Bush over the budget. "Democrats are just afraid there will not be enough taxpayers' money to spend on wasteful government projects," Gilmore said.
Democrats said the GOP cannot blame them. Bush "ought to stand up and be a man about this," said Sen. Kent Conrad, D-N.D, Budget Committee chairman.
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