FOR IMMEDIATE RELEASE:                      
                      Contact:           McCall Avery

April 24, 2007                         
                                                                       
202/225-4201

**Sam Johnson's Social Security Solution for younger workers:**

**You keep your half**

Today U.S. Congressman Sam Johnson (3^rd^ Dist.-Texas) announced the
reintroduction of his legislation to strengthen Social Security by
allowing *[younger]{.underline}* workers the choice of keeping their
half of Social Security taxes to invest in a personal retirement
account.  All parties involved in the Social Security debate agree that
Social Security will not be changed for seniors or near-retirees.

Johnson, the Ranking Republican on the Social Security Subcommittee on
the House Ways and Means Committee, reintroduced his bill on the same
day that the Social Security Trustees issued their annual report on the
financial status of the Social Security Trust Fund.  The annual report
stated that the Trust Fund begins to collect smaller surpluses starting
in 2010 and will reach a cash-flow deficit beginning in 2017.  The 2017
date is important because that is the year that, effectively, general
revenues will be required to begin paying Social Security benefits.  By
2041 when the Trust Fund is expected to be exhausted, Social Security
benefits are expected to require the current tax of 12.4 percent of all
payroll plus roughly 14 percent of general tax revenue in order to pay
expected benefits. 

"For younger generations, Social Security needs fixing and I've got a
simple solution.  Seniors -- this isn't about you.  There is money for
your retirement.  For younger folks -- let's share.  Let's split your
12% in payroll taxes in half... half to the government -- half to you. 
You can keep your half and save it in your own personal retirement
account.  The other half will go to the government to pay Social
Security benefits for near retirees, orphans, widows and the disabled,"
said Johnson.

The Individual Social Security Investment Program Act, H.R. 2002, will
give people born after 1950 the *choice* to divert their share of the
payroll tax (6.2 %) into a personal retirement account.  Employers will
continue to contribute 6.2% to assist in funding benefits under the
existing program, help pay transition and administrative costs, and fund
disability and survivors' benefits. Under Johnson's initiative, younger
people would be able to invest in personal retirement accounts set up
much like 401(k) plans. 

Johnson's plan hinges on simplicity and uses money that already goes
directly into the Social Security system.  This is not additional money
workers must find, it is the taxes they already pay. 

"Those who retire in 2035 should not be forced to live off a system
created in 1935.  My plan will allow younger folks to build a nest egg
rather than build expectations of federal benefits that won't be there."

This legislation builds on Johnson's legacy of reform on what some call
the most radio-active issue in Washington -- Social Security.  Defying
the odds and confounding the critics, in 2000 Johnson wrote the bill
that ended the unfair tax on seniors' Social Security benefits just
because they opted to remain in the workforce past retirement.  The
President signed Johnson's bill into law later that year.

"I'm not afraid to tackle tough issues because I firmly believe that
strengthening Social Security for younger generations is right for
America," concluded Johnson.

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